Published: March 28, 2023 at 4:24 p.m. ET
By Denny Jacob
Micron Technology Inc. on Tuesday posted top and bottom line results that missed analysts’ estimates as its inventory levels weighed on second-quarter results. Here’s what you need to know.
REVENUE: The memory-chip maker posted revenue of $3.69 billion in the quarter ended March 2, down from $7.79 billion a year earlier. Analysts…
By Denny Jacob
Micron Technology Inc. on Tuesday posted top and bottom line results that missed analysts’ estimates as its inventory levels weighed on second-quarter results. Here’s what you need to know.
REVENUE: The memory-chip maker posted revenue of $3.69 billion in the quarter ended March 2, down from $7.79 billion a year earlier. Analysts polled by FactSet expected $3.71 billion.
ADJUSTED EARNINGS: The Boise, Idaho-based company recorded an adjusted loss of $1.91 a share. Analysts polled by FactSet expected an adjusted loss of 67 cents a share.
NET INCOME: Micron logged a loss of $2.31 billion versus net income of $2.26 billion in the prior-year period. Analysts polled by FactSet expected a loss of $853.2 million.
WHAT WE WATCHED:
INVENTORY: Micron said it had inventory writedowns of $1.43 billion in the second quarter, which had an impact of $1.34 a share. Micron earlier this month said it is planning to write down inventory in its latest fiscal quarter and is reducing chip production amid a weaker market. The company sees elevated inventory levels improving through this year, executives said in an analyst call at the time.
OUTLOOK: Micron issued guidance for the third quarter, which it said assumes a writedown of about $500 million tied to inventory produced in the quarter. The company guided for about $3.7 billion in revenue and an adjusted loss of about $1.58 a share in the third quarter.
COMMENTARY: “Customer inventories are getting better, and we expect gradual improvements to the industry’s supply-demand balance,” said Chief Executive Sanjay Mehrotra.
Write to Denny Jacob at denny.jacob@wsj.com
