Micron Technology (NASDAQ:MU) shares dipped on the last day of the first quarter, but not before reporting an adjusted second quarter loss of 5 cents per share, versus market expectations for 8 cents, while revenue for the chip maker was slightly below forecasts. That smaller loss was helped by cost cuts, as Micron tries to navigate what it calls "challenging" market conditions.
Analyst Wedbush said it was maintaining the stock at Neutral and a 12-month price target of $10.50. The analyst said potential for recovery remains uncertain.
"FQ2 results were mixed and with expectations bracing for the worst, the FQ3 guide down was not as bad as feared, but still bad and below our Street low estimates," said Betsy Van Hees at Wedbush in a note.
Micron shares were 0.1% lower at $10.47 at the close.
Meanwhile, Lindsay Corp (NYSE:LNN) was also placed on Neutral,with a 12-month price target of $69, as Wedbush cited results were below expectations, largely owing to weakness in infrastructure.
The company reported adjusted earnings of $0.41, excluding environmental expenses of $13 million, compared to the consensus/WS EPS estimates of $0.56/$0.50. Sales of $120.6 million were also below expectations compared to consensus/WS estimates of $123.8/$124.8 million. The weakness was primarily driven by larger-than-expected declines in infrastructure sales and margins while irrigation sales and margins were largely in line with our estimates, Wedbush said.
Wedbush said the outlook remained challenging. "Based on the weak backdrop for the farm sector, including low commodity prices and the lowest projected net farm income since 2002, the company remains cautious on the irrigation markets in the near term. Meanwhile, backlog declined 29% YOY given the lack of major Road Zipper projects such as the completed Golden Gate Bridge project."
Lindsay shares closed down 8.9% at $71.61.