NEW YORK (TheStreet) -- Shares of Micron Technology (MU) are dropping, down 18.48% to $19.58 in morning trading on Friday, after Credit Suisse lowered its price target to $34 from $50 while maintaining its "outperform" rating.
Yesterday, Micron Technology reported earnings of $0.42 per share for the fiscal third quarter 2015, compared to $0.68 earnings per share in the same period last year. Revenue for the third quarter was $3.85 billion, 8% lower compared to the second quarter this year and 3% lower than the third quarter of fiscal 2014.
"The company will not have meaningful production on 20nm in the next quarter, and it is not clear if there will be meaningful DRAM bit growth in the November quarter this year," Credit Suisse analysts said.
Both in DRAM and NAND are under-shipping the market, and they have adverse pricing in DRAM, according to Thomson Reuters.
Micron Technology makes both dynamic random access memory (DRAM) chips, used mostly in personal computers, and NAND memory chips for storing music, pictures and other data on smartphones, cameras and other mobile devices.
Insight from TheStreet Rating's Team:
Micron Technology (MU) just issued a huge reduction in forward sales guidance.
The company now sees fourth-quarter revenues of only $3.45 billion to $3.70 billion, compared to the previous consensus of $4.16 billion.
- Doug Kass, Micron Miniaturizes its 4Q Outlook, Originally Published on 6/25/15 on Real Money Pro.