What to Watch When Micron Reports Wednesday

Micron Technology Inc. (NASDAQ: MU) is set to report its most recent quarterly results after the markets close on Wednesday. Analysts are calling for $0.47 in earnings per share (EPS) and $5.02 billion in revenue for the fiscal first quarter. The same period of last year reportedly had $2.97 in EPS and $7.91 billion in revenue.

In its prior earnings report, the company issued guidance for this quarter. Micron said that it expects to see EPS of $0.46, give or take $0.07, and revenues of $5.0 billion, plus or minus $200 million.

Note that Micron bottomed at close to $32 at the start of summer but then recovered to $50 by mid-September. There was a pullback for shares following Micron’s most recent earnings report, and with the stock holding near multiyear highs, it’s possible that this could happen again. On the other hand, it looks like Micron has been on the upswing, and any pullback could offer an opportunity for more investors to get into the stock.

With memory demand drivers remaining somewhat underappreciated, and with solid demand from end-markets such as data center, artificial intelligence, deep learning, big data, mobile and autonomous driving, analysts believe Micron continues to execute well on its manufacturing road-map despite recent issues.

Excluding Tuesday’s move, Micron had outperformed the broad markets, with its stock up about 67% year to date. In the past 52 weeks, the stock was up closer to 55%.

Here’s what analysts said about Microsoft ahead of the report:

  • Needham has a Buy rating with a $70 price target.
  • Wedbush has an Outperform rating and a $65 target.
  • Susquehanna has a Positive rating and an $85 price target.
  • Morgan Stanley rates it as Positive rating a $56 price target.
  • Mizuho’s Buy rating comes with a $53 price target.
  • Longbow Research has a Buy rating.
  • Raymond James has a Hold rating.

Shares of Micron traded up about 0.5% to $53.15 on Tuesday, in a 52-week range of $28.39 to $54.30. The consensus price target is $54.93.