Wedbush analysts shared their views on Micron Technology, Inc. (NASDAQ:MU) ahead of the company’s upcoming Q3 earnings announcement, highlighting that the memory market has deteriorated significantly since the last earnings call.

According to the analysts, consumer demand for multiple key products has substantially underperformed expectations. In turn, softening demand for client-oriented DRAM and NAND along with concerns that enterprise markets could also falter, have weighed more heavily on pricing setting up a more difficult near-term environment.

Despite the deteriorating environment, the analysts said they don’t expect Q3 results to deviate significantly from consensus. Rather, the primary question in their view is how conservative the company is in setting the bar for Q4.

The analysts believe management could guide as robustly as $2.30-$2.40 level (roughly flattish with consensus expectations for the May quarter, albeit below Street expectations) which would imply mid-single digit ASP declines in memory ASPs with the impact on earnings (quarter-over-quarter) largely offset by bit shipment growth. Conversely, the analysts believe the guide could be as low as $2.00-$2.10, which would suggest far steeper quarter-over-quarter price declines.