Declining Expectations For Micron's Earnings

Shares of Micron Technology, Inc. (NASDAQ: MU) fell 1.88 percent on Wednesday, ahead of the company’s third quarter financial results, scheduled for after the market closes on Thursday.

According to Estimize, the company is expected to report a marked decline in earnings on pretty much flat sales.

In the third quarter last year, the chipmaker reported earnings of $0.79 per share on revenue of $3.98 billion. For the current quarter, management guided sales of $3.95 billion. The Street, for its part, is modeling consensus earnings of $0.58 per share on revenue of $3.945 billion, while the crowd is projecting consensus earnings of $0.66 per share on revenue of $3.992 billion. However, Micron has a history of beating consensus estimates.

Related Link: Cowen, Topeka Bullish On Micron Before Earnings

A second chart shows the evolution of sentiment over time. Both the Street and the crowd have been becoming increasingly bearish as earnings loomed.

Related Link: MKM: 'Room To Disappoint' For Micron Technology's Q3

PC Struggles ‘Could Be Prolonged’

In a recent report, MKM Partners’ Ian Ing trimmed his third quarter earnings estimate by 16 percent, to $0.55 a share, maintaining a Neutral rating and $30 price target on the stock.

Micron has beaten expectations in each of the past four quarters. Nonetheless, Ing thinks its struggles in the PC market "could be prolonged."