What to Watch For in Micron's Earnings Report on Thursday

Technology

Published: September 18, 2018 1:55 pm

Last Updated: January 11, 2020 5:43 pm

Micron Technology Inc. (NASDAQ: MU) is scheduled to release its most recent quarterly 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.

Recently, Cowen analyst Karl Ackerman maintained an Outperform rating on Micron but cut the price target to $62 from $72. That still implies upside of 42% from the most recent closing price of $43.58.

However, 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 this notion appears to already be priced in to the stock.

Excluding Tuesday’s move, Micron has outperformed the broad market, with the stock up 26% in the past 52 weeks. In just 2018 alone the stock is up only 6%.

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

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.