NEW YORK (TheStreet) -- Micron Technology (MU) stock closed lower by 1.14% to $10.38 on Monday, before the data storage maker reports its fiscal 2016 second quarter financial results after Wednesday's market close.
The Boise, ID-based company is expected to deliver a sharp decline in earnings per share and revenue this week.
Wall Street is anticipating a loss of 8 cents per share for the latest quarter, compared with earnings of 81 cents per share for the fiscal 2015 second quarter.
Revenue is estimated to decline 26.8% year-over-year to $3.05 billion for the quarter, from $4.17 billion for the same period in fiscal 2015, as dynamic random access memory (DRAM) prices continue to weaken.
"We expect near-term challenges as PCs are weak... [and because of] weak data points from ODMs and a challenging pricing environment (DRAM pricing -8% in the last month, -10% from December to March)," Barclays analysts wrote in a note this morning.
"However, the ramp of 20nm DRAM and 3D NAND should meaningfully improve MU's relative cost position, and combined with limited capacity expansion by competitors, we look for margins to bottom in 1H16," analysts added.
Separately, Micron Technology has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures, and its weaknesses, including feeble earnings per share growth, deteriorating net income and weak operating cash flow.
You can view the full analysis from the report here: MU
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