Micron Drops 5% As CFO Warns 1Q Sales Could Miss Guidance

Micron Drops 5% As CFO Warns 1Q Sales Could Miss Guidance

Shares of Micron fell 4.8% on Thursday after its CFO warned that the chipmaker could miss 1Q revenue guidance.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Speaking at Keybanc’s virtual conference, Micron’s (MU) CFO David Zinsner stated that the demand outlook for memory chips is worsening, Bloomberg reported. As a result, Zinsner cautioned that 1Q (September to November) sales could come below the forecast of $5.4 billion-$5.6 billion.” data-reactid=”13″>Speaking at Keybanc’s virtual conference, Micron’s (MU) CFO David Zinsner stated that the demand outlook for memory chips is worsening, Bloomberg reported. As a result, Zinsner cautioned that 1Q (September to November) sales could come below the forecast of $5.4 billion-$5.6 billion.

Meanwhile, Zinsner kept the company’s revenues outlook for the current quarter (June to August) unchanged. Micron expects to generate sales of between $5.75 billion and $6.25 billion during the fourth quarter.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On Aug. 12, Deutsche Bank analyst Sidney Ho downgraded the stock to Hold from Buy citing lower memory chip pricing expectations due to supply-demand mismatch. In a note to clients, Ho wrote “Inventory build-up at cloud data center customers looks worse than he had anticipated, while demand from other end markets is weakening.”” data-reactid=”19″>On Aug. 12, Deutsche Bank analyst Sidney Ho downgraded the stock to Hold from Buy citing lower memory chip pricing expectations due to supply-demand mismatch. In a note to clients, Ho wrote “Inventory build-up at cloud data center customers looks worse than he had anticipated, while demand from other end markets is weakening.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 16 Buys, 8 Holds, and 1 Sell. The average&nbsp;price target&nbsp;of $64.29 implies upside potential of about 39%. (See MU stock analysis on TipRanks).” data-reactid=”20″>Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 16 Buys, 8 Holds, and 1 Sell. The average price target of $64.29 implies upside potential of about 39%. (See MU stock analysis on TipRanks).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Related News:
Deutsche Bank Cuts Micron To Hold Amid Lower Memory Pricing Bet
Despite Lowering Estimates, Micron Is Still a Sound Investment, Says 5-Star Analyst
Upcoming Tailwinds Will Push Micron Stock Forward, Says 5-Star Analyst” data-reactid=”29″>Related News:
Deutsche Bank Cuts Micron To Hold Amid Lower Memory Pricing Bet
Despite Lowering Estimates, Micron Is Still a Sound Investment, Says 5-Star Analyst
Upcoming Tailwinds Will Push Micron Stock Forward, Says 5-Star Analyst

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