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Boise, Idaho-based Micron Technology, Inc. (MU) is a semiconductor company that designs, develops, manufactures, and sells memory and storage products. With a market cap of $113.7 billion, Micron operates through Compute and Networking, Mobile, Embedded, and Storage business units. It is expected to announce its Q4 earnings on Wednesday, Sept. 25.
Ahead of the event, analysts expect Micron to report a profit of $0.97 per share, up 180.2% from a loss of $1.21 per share reported in the year-ago quarter. The company consistently surpassed Wall Street’s ESP estimates over the past four quarters. Its EPS for the last reported quarter amounted to $0.43, exceeding the consensus estimates by 13.2%.
In fiscal 2024, analysts expect Micron to report an EPS of $0.58, up 111.7% from a loss of $4.97 per share in fiscal 2023. In fiscal 2025, its EPS is expected to grow a massive 1,408.6% year over year to $8.75.
MU stock has rallied 29.3% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 15.8% gains and the S&P 500 Technology Sector SPDR’s (XLK) 12.9% returns over the same time frame.
On June 26, Micron Technology announced its Q3 earnings report, and the stock dipped 7.2% despite better-than-expected results due to softer Q4 guidance. For fiscal Q4, the company expects EPS to be between $0.8 and $1.08, and revenue is projected to be between $7.6 billion and $7.8 billion.
In the third quarter, Micron reported an impressive 81.5% year over year revenue growth. It demonstrated robust financial resilience by reporting a net income of $332 million compared to the net loss of $1.9 billion in the year-ago quarter. Micron exhibited commendable operational efficiency in the last reported quarter by reducing the cost of goods sold and keeping operating expenses low.
Moreover, it raised its investment in R&D by 12.1% compared to Q3 2023, demonstrating its approach toward growth and innovation, positioning it to capitalize on rising chip demand in data centers.
The consensus opinion on Micron Technology stock is bullish, with an overall “Strong Buy” rating. Out of the 27 analysts covering the stock, 24 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and one advises a “Hold” rating.
The average target price for Micron stock is $164.26, indicating a solid potential upside of 60.2% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
