Micron Technology Inc. forecast current quarter revenue below analysts’ expectations and warned that shipments for its memory chips were set to dip in the near-term as its customers face shortages of other parts making personal computers. We do.
Shares of the Apple Inc-supplier, which also said it was facing shortfalls in its supply chain for some components, fell nearly 4 percent in extended trading on Tuesday.
The company manufactures both NAND memory chips that serve the data storage market and DRAM memory chips that are widely used in data centers, personal computers, and other equipment.
Micron, one of the world’s largest memory chip suppliers, said it expects shipments of both chips to decline sequentially in the near future.
“Some PC customers are adjusting their memory and storage purchases due to a lack of non-memory components that are needed to meet PC bills,” Chief Executive Officer Sanjay Mehrotra told analysts.
“We expect this adjustment to be largely resolved in our PC customers in the coming months.”
However, analysts wondered whether this was a “speedbump or the beginning of a period of extended weakness”.
Questions revolve around Micron whether the memory industry is entering a prolonged downcycle, or experiencing a more modest demand blip that will recover relatively quickly, said Wedbush analyst Matthew Bryson.
While Micron’s comments support the latter view, Bryson said he waited for more concrete data to support this result.
According to Refinitiv’s IBES data, Micron forecasts current quarter revenue of $7.65 billion, plus or minus $200 million, while analysts expect an average of $8.57 billion.
The company also estimates adjusted earnings per share of $2.10, plus or minus 10 cents, a missing estimate of $2.33 per share.
In the fourth quarter ended Sept. 2, Micron earned $2.42 per share on an adjusted basis, beating analysts’ average estimate of $2.33 per share.
This News Originally From – The Epoch Times