Micron Technology Inc MU shares are trading lower Thursday after the company reported fiscal first-quarter financial results that came in below estimates.
Q1 Results: Micron reported first-quarter revenue of $4.08 billion, which missed average analyst estimates of $4.12 billion, according to Benzinga Pro. The company's top-line results were down from $7.69 billion year-over-year.
Micron reported a quarterly net loss of 4 cents per share, which missed average estimates for a loss of 1 cent per share.
According to a regulatory filing, Micron has entered into a restructuring plan in which it expects to reduce headcount by approximately 10%. In connection with the plan, the company expects to incur charges of at least $30 million in the second quarter of fiscal 2023.
"Micron's strong technology, manufacturing and financial position put us on solid footing to navigate the near-term environment, and we are taking decisive actions to cut our supply and expenses. We expect improving customer inventories to enable higher revenue in the fiscal second half, and to deliver strong profitability once we get past this downturn," said Sanjay Mehrotra, president and CEO of Micron.
Outlook: Micron expects fiscal second-quarter revenue to be between $3.6 billion and $4 billion versus average estimates of $3.75 billion. The company anticipates a second-quarter adjusted net loss between 52 cents and 72 cents per share versus estimates for a loss of 30 cents per share.
Analyst Assessment: Multiple analysts lowered price targets on the stock following the company's quarterly results.
- Mizuho analyst Vijay Rakesh maintained Micron with a Neutral and lowered the price target from $50 to $48.
- UBS analyst Timothy Arcuri maintained Micron with a Buy and lowered the price target from $75 to $70.
- Morgan Stanley analyst Joseph Moore maintained Micron with a Underweight and lowered the price target from $49 to $46.
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MU Price Action: Micron has a 52-week high of $98.45 and a 52-week low of $48.45.
Photo: courtesy of Micron.
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