Wedbush Cuts Price Target on Micron Technology (MU) Following EPS Miss

Wedbush maintains an Outperform rating on Micron Technology (NASDAQ: MU), and cut the price target to $26.00 (from $31.00), following F3Q results. MU reported revenue of $3.85B, at the lower end of revenue guidance of $3.8B to $4.05B, and below the Street ($3.9B). Pro forma EPS of $0.54 was also below Street consensus of $0.56.

Analyst Betsy Hees commented, "Micron’s (MU) FQ3 (May) miss on continued weakness in PC DRAM was not surprising; however, FQ4 outlook of revenue down -4% to -10% Q/Q, DRAM GM down mid-single digits Q/Q, and DRAM cost per bit up low-single digits was a big negative surprise driving shares sharply down in AHs trading."

Hees also added, "FQ4 (Aug) revenue guide of $3.45B to $3.7B (down -10% to -4% Q/Q) fell well short of the Street ($4.16B) and our lower ($4.02B) estimates. MU noted continued DRAM ASP declines from PC and cloud servers as it shifts its mix towards mobile and DDR4. We are lowering our FQ4 (Aug) and full year estimates (see: Figure 1)."

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $24.02 yesterday.

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