What occurred

Speaking at the Potential of Technological know-how virtual meeting hosted by KeyBanc Money Markets nowadays, Micron Technological know-how (NASDAQ:MU) CFO David Zinsner laid out a conservative forecast for profits around the next several quarters.

Micron shares are down 4.5% in reaction as of 1:40 p.m. EDT.

A glowing red stock chart arrow trending down

Picture resource: Getty Photos.

So what

TheFly.com stories from the convention that Micron is guiding investors to assume $6 billion in earnings, in addition or minus $250 million, in fiscal Q4. (Past quarter was Q3, by the way. By Micron’s calendar, Q4 is the quarter we’re in ideal now.) The great information is that $6 billion is basically a very little little bit forward of consensus forecasts from Wall Avenue.   

But here’s the lousy news: Zinsner famous that Q4 has one much more 7 days in it this yr than previous. If you strip out profits from that extra week to make the number a lot more equivalent to the identical quarter previous yr, this year’s Q4 sales really search more like $5.6 billion.

Now what

Even that would be a 14% improvement more than Micron’s performance in very last year’s Q4, but it can be only a 4% sequential advancement in excess of Q3’s $5.4 billion. What’s more, Zinsner suggests fiscal Q1 2021 should be in the $5.4 billion selection as well — as opposed to the $5.8 billion in income that Wall Avenue wants to see.

As a result, the reason traders are marketing Micron stock right now: Q4 might seem just great. It may search downright marvelous in comparison to final year’s Q4. But if you glimpse just 1 more quarter in advance, problems might be brewing for Micron’s revenue.

And which is not what buyers wanted to hear, at all.