Earnings Preview: Micron Technology

Micron Technology (MU) is expected to report Q1 earnings after market close Tuesday, December 23, with a conference call scheduled for 4:30 pm ET.

Guidance

The consensus estimate is loss (45c) for EPS and $1.32B for revenue, according to First Call.

Analyst Views

Micron shares tumbled Monday after a JPMorgan analyst said the memory chip maker is likely to disappoint with its Q1 results because of falling prices and demand. Analyst Shawn Webster said in a client note that he estimates the company's shipments are actually up between 14% and 19% from the previous quarter. But he said prices have plummeted 29% to 33% because of excess capacity. Webster remains concerned as most chip companies are experiencing order cuts from PC customers. Webster reiterated a Neutral rating on shares and said Micron will probably miss his estimates for the quarter. He projects a Q1 loss of (54c) on $1.36B in sales.

Many analysts believe Q2 guidance could come in below the current consensus estimates calling for a loss of (39c) on $1.23B in revenue. Key issues for the conference call: forward guidance and commentary on its workforce reduction plan announced back on Oct. 9; details on an DRAM supplier consolidation and Micron's interest as a consolidator; CapEx spending reductions and DRAM and NAND bit growth expectations; details around its Inotera JV with Nanya; commentary on the Rambus (RMBS) patent dispute; and Qimonda's (QI) cash infusion effect on Micron's business plans.

Comments

[Henrique Si...:]

These chipmakers are battling for survival. I wouldn`t put a penny on them.

2008 Dec 23 01:16 PM