Wall Street is expecting a rough quarter for beleaguered memory chip maker Micron Technology, which reports earnings Wednesday after the bell. The only question for most analysts is, How bad is it really going to be? Many analysts say the company's issues can be traced directly to the decline in memory prices.
The stock is up 29 percent over the last three months but analysts remain skeptical the rally will last. Shares are actually down 32 percent going back 12 months. Ironically, chipmakers are on pace for their best first quarter ever.
"Expect a tough quarter," said Morgan Stanley's Joseph Moore in an earnings preview note. There are indications that expectations for a second half recovery "are too optimistic."
"We expect MU earnings to reflect the weakness we have seen in the market since the company guided in mid-December, and we are frankly surprised that the company did not pre-announce," Moore said.