Micron Technology expects second-quarter results below estimates

(Reuters) - Micron Technology (NASDAQ:MU ) forecast second-quarter results below Wall Street estimates on Wednesday as weakened prices of memory chips used in handsets and personal computers weigh on earnings, sending the company's shares down 17.2% in extended trading.

The market for DRAM chips, which contribute to most of Boise, Idaho-based Micron's revenue, remains sluggish because of weak consumer demand and an ongoing supply glut.

DRAM chips are used in data centers, personal computers, smartphones and other computing devices.

Excluding items, Micron expects to earn $1.43 per share, plus or minus 10 cents, compared to analysts' expectation of $1.91, according to data compiled by LSEG.

It expects to report second-quarter revenue of $7.90 billion, plus or minus $200 million, compared to analysts' estimate of $8.98 billion, according to data compiled by LSEG.

Demand for PCs and smartphones in key markets such as China remains weak, which has led to reduced inventory levels and an oversupply of memory chips.



Micron is working on a 1,400-acre mega campus to make DRAM chips in central New York state.

It also offers flash memory NAND chips, which serve the data storage market.

Source: Investing.com