Shares of chip giant Micron Technology (NASDAQ: MU) trended lower in pre-market trading on Thursday after the company’s fiscal Q1 losses came in wider-than-expected.
More disappointingly, Micron has forecasted a second-quarter adjusted loss of $0.62 plus or minus $0.10 per share. However, this loss projection is more than double analysts’ expectations of a loss of $0.30 per share.
In another negative turn for the company, it has also announced that the company is likely to lay off 10% of its employees next year as it sees a glut in the chip market.
Micron CEO Sanjay Mehrotra commented, “Due to the significant supply-demand mismatch entering calendar 2023, we expect that profitability will remain challenged throughout 2023.”
Mehrotra added that the chipmaker was taking “decisive actions to cut our supply and expenses” and expects its customers’ inventories to improve and anticipates revenues to improve in the second half of next year.
Analysts are cautiously optimistic about MU stock with a Moderate Buy consensus rating based on 17 Buys, five Holds and two Sells.
