Micron Technology Inc. (NASDAQ: MU) is scheduled to release its fiscal first-quarter financial results after the markets close on Wednesday. The consensus estimates are calling for $0.28 in earnings per share (EPS) and $3.95 billion in revenue. The same period from last year had $0.24 in EPS and $3.35 billion in revenue.
Trends in DRAM and memory appear to be remaining strong in the calendar fourth quarter. We have seen this on a broader industry basis for the third quarter and into the current quarter, but now we are getting further word from Micron that its business has been tracking stronger in this quarter.
Micron had announced on November 23 an updated presentation time at the Credit Suisse Technology, Telecom and Media Conference in Scottsdale, Arizona. Now a filing with the U.S. Securities & Exchange Commission shows what that guidance will be: Micron talked about the first quarter’s results being at or above the high-end of guidance.
The driving forces are improvements in average selling prices, particularly in DRAM. Micron’s slide presentation also showed that overall demand remains healthy and that the company sees a slowing industry supply growth for the next few quarters.
A few analysts weighed in on Micron ahead of the earnings report:
- Deutsche Bank reiterated a Buy rating with a $24 price target.
- Credit Suisse reiterated a Buy rating with a $25 price target.
- Susquehanna has a Buy rating with a $24 price target.
- Standpoint Research has a Buy rating.
- Citigroup initiated coverage with a Buy rating and a $30 price target.
- Brean Capital has a Buy rating with a $25 price target.
- Cowen has an Outperform rating with a $23 price target.
- Nomura has a Buy rating with a $25 price target.
- Needham has an Underperform rating.
So far in 2016, Micron has outperformed the broad markets, with the stock up about 45%.
Shares of Micron were trading at $20.40 on Wednesday, with a consensus analyst price target of $22.17 and a 52-week trading range of $9.31 to $21.00.
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