Micron Technology (NASDAQ:MU) shares dropped more than 3% on Thursday following the company’s reported Q1 results, with EPS of ($0.04) coming in worse than the Street estimate of ($0.01). Revenue was $4.09 billion, missing the Street estimate of $4.15 billion.
The company's Q1 results reflect an overall worsening of the demand environment across most end markets (most notably Data Centers), with weaker pricing trends as the primary driver of the sequential revenue decline.
The company expects Q2/23 EPS to be in the range of ($0.72)-($0.52), compared to the Street estimate of ($0.30), and revenue in the range of $3.6-4 billion, compared to the Street estimate of $3.75 billion.
Despite a soft outlook for Q2, the company's underlying assumptions that point to a demand recovery toward mid-2023 seem optimistic, which could lead to further downside to estimates.