Needham analyst reacts to Micron Q2 earnings
Micron Technology Inc (NASDAQ: MU) gained slightly in extended trading on Tuesday even after reporting its largest quarterly loss on record. Microns outlook for the future The tech stock is keeping resilient primarily because the management said overburdened customer inventories that have been a nightmare for Micron in recent quarters were starting to show signs of improvement and that will continue through the rest of 2023. For the current quarter, Micron forecasts $3.5 billion to $3.9 billion in revenue – roughly in line with expectations. According to Needhams Rajvindra Gill: Theyre writing down older excess inventory, at least clearing out excess inventory. So, if we can contemplate a bottom in mid-quarter then we start to go to recovery in H2 and potentially a return to growth in CY24. The Nasdaq-listed firm expects $1.58 of adjusted per-share loss in Q3 and non-GAAP gross margin at minus 21%. Microns Q2 earnings snapshot Lost $2.31 billion that translates to $2.12 per share That compared to $2.26 billion of net income a year ago Adjusted loss came in at $1.91 a share as per the press release Revenue tanked 53% year-on-year to $3.69 billion Consensus was 67 cents loss (adj) on $3.71 billion revenue The tech company is convinced that industry demand will pick up moving