What to Watch in Micron’s Earnings After the Close

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Micron Technology Inc. (NASDAQ: MU) is set to report its fiscal fourth-quarter financial results late on Thursday. The consensus estimates from Thomson Reuters call for $3.33 in earnings per share (EPS) and $8.25 billion in revenue. In the same period of last year, the company posted EPS of $2.02 and $6.14 billion in revenue.

In a recent report, Cowen analyst Karl Ackerman reiterated an Outperform rating on Micron but lowered the price target to $62 from $72, implying an upside of 42% from Monday’s closing price of $43.58.

It’s worth pointing out that Ackerman was cautious ahead of this coming report. He believes that investor sentiment is “dreadful,” but at the same time he doesn’t dismiss the “incremental risk in H2 of this year as our field trip in Asia last week reveals a less benign supply/demand environment for DRAM.”

Looking ahead, he expects Micron to guide below estimates for the first time in the past eight quarters, although he did mention that this notion appears to already be priced in to the stock.

Excluding Thursday’s move, Micron has outperformed the broad market, with the stock up 25% in the past 52 weeks. In just 2018 alone the stock is up only 9.5%.

A few other analysts weighed in on Micron ahead of the report:

  • JPMorgan reiterated an Overweight rating with an $84 target.
  • RBC has an Outperform rating with a $70 price target.
  • Deutsche Bank has a Buy rating with a $60 price target.
  • BMO Capital Markets has a Hold rating with a $45 target.
  • Macquarie has an Outperform rating and a $70 price target.
  • MKM Partners has a Buy rating with a $63 price target.
  • Goldman Sachs has a Neutral rating and a $50 target.

Shares of Micron were last seen up about 4% at $45.44 on Tuesday. The stock has a consensus analyst price target of $83.60 and a 52-week trading range of $34.09 to $64.66.

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