Semiconductor manufacturer Micron (MU) reported 3Q22 earnings for the quarter ended August 31 after the close Thursday. On August 9 they warned that revenue in the current quarter would come in at or below previous guidance of $7.2 billion and that next quarter revenue and margins would decline significantly. They weren’t kidding!
Current quarter revenue came in at $6.6 billion and – most importantly – they guided 4Q22 revenue to $4.25 billion and EPS to 4 cents! That compares to revenue of $7.7 billion and $2.16 EPS in 4Q21.
Semiconductors go into almost everything these days so the implication is that demand has collapsed. While MU stock may be washed out this point – down about 50% from its highs at the beginning of the year – this report bodes poorly for the health of the global economy.