What to Look For in Micron’s Earnings

By Chris Lange Updated Jan 12, 7:47AM EST · Published Sep 26, 1:25PM EDT

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What to Look For in Micron’s Earnings — © Thinkstock

Micron Technology Inc. (NASDAQ: MU) is set to report its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus estimates are $1.84 in earnings per share (EPS) and $5.96 billion in revenue. The same period from last year reportedly had a net loss of $0.05 per share and revenue of $3.22 billion.

The global trends taking shape today, including machine learning and big data analytics, have the potential to create significant opportunities for Micron. The firm is focused on positioning the company to realize these opportunities by investing in technology and products while also strengthening its balance sheet.

The company delivered strong operational performance in the third quarter, which enabled it to wipe out $1 billion in debt. Its results reflect solid execution of its cost reduction plans and ongoing favorable industry supply and demand dynamics.

Looking ahead to the rest of the year, analysts have said that after a prolonged period of relentless price declines, the memory market (especially DRAM), industry pricing recently has stabilized. Also the industry should see relatively healthy demand and more rational supply.

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The stock has already been hitting multiyear highs, but a strong earnings report could push shares to a level not seen since 2001.

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

Loop Capital has a Buy rating with a $46 price target.
MKM Partners has a Buy rating with a $45 price target.
Deutsche Bank has a Buy rating and a $42 price target.
Susquehanna has a Positive rating with a $50 price target.
Evercore ISI has an Outperform rating and a $50 price target.
KeyCorp has a Hold rating.
Goldman Sachs has a Buy rating with a $40 price target.
Citigroup’s Buy rating comes with a $45 price target.
Macquarie has an Outperform rating and a $38 price target.
FBN Securities has an Outperform rating with a $45 price target.
Credit Suisse has an Outperform rating with a $40 price target.

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Excluding Tuesday’s move, Micron had vastly outperformed the broad markets, with the stock up 59% year to date. Over the past 52 weeks, the stock was up 99%.

Shares of Micron were last seen up more than 1% at $35.34, with a 52-week range of $16.17 to $36.60.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.