Benchmark notes that some investors took encouragement from Micron’s (MU) fiscal Q2 report of improving inventories in some end markets despite the company reporting a major loss with negative gross margins and guiding to another major loss for this quarter exceeding investors’ expectations. While "relevant" to Western Digital (WDC), the firm believes it is "too early" to take a more aggressive position, noting that the consensus FY24 non-GAAP earnings estimate for Western Digital has dropped by forty cents during the past 30 days to "just" $1.26 per diluted share. The firm, which envisions losses continuing into 2024, driven by the steep decline in NAND pricing and high NAND inventory levels, keeps a Hold rating with no price target on Western Digital shares.
Published first on TheFly
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