Shares of Micron fell 4.8% on Thursday after its CFO warned that the chipmaker could overlook 1Q income steerage.
Talking at Keybanc’s virtual meeting, Micron’s (MU) CFO David Zinsner stated that the desire outlook for memory chips is worsening, Bloomberg documented. As a consequence, Zinsner cautioned that 1Q (September to November) revenue could arrive underneath the forecast of $5.4 billion-$5.6 billion.
In the meantime, Zinsner retained the company’s revenues outlook for the present-day quarter (June to August) unchanged. Micron expects to deliver gross sales of amongst $5.75 billion and $6.25 billion through the fourth quarter.
On Aug. 12, Deutsche Lender analyst Sidney Ho downgraded the stock to Maintain from Buy citing decrease memory chip pricing anticipations because of to supply-need mismatch. In a observe to consumers, Ho wrote “Inventory make-up at cloud details center customers appears even worse than he had expected, although desire from other end marketplaces is weakening.”
Total, the Street has a cautiously optimistic outlook on the inventory. The Average Obtain analyst consensus is dependent on 16 Buys, 8 Retains, and 1 Sell. The average rate goal of $64.29 implies upside opportunity of about 39%. (See MU inventory investigation on TipRanks).
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