Micron Earnings: What Do the Pros Want?

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UPDATE: Micron beats Q2 estimates. EPS: 90 cents per share vs. 69 cents estimated. Revenues: $4.65 billion versus $4.63 billion estimated.

Micron Technology, Inc. (NASDAQ:MU) is a few hours away from entering the earnings confessional for its fiscal second-quarter earnings. We’ll take a quick look at what Wall Street wants, and where MU stock might head next.

What Wall Street Expects From Micron

First, the headline figures:

Micron Earnings Expectations

Analyst estimates for Micron earnings come in a range of 62 cents to 89 cents per share, but the consensus mark is for 80 cents per share.

Wall Street’s experts see revenues coming in at $4.6 billion. That’d be 59% growth year-over-year, and 15% growth sequentially.

Credit Suisse is a bit more optimistic on the bottom line, seeing Q2 earnings of 86 cents per share. Its revenue guidance of $4.65 billion is also slightly above the consensus, as well as Micron’s own guidance for $4.53 billion.

MU Stock Sentiment

Right now, analysts who cover MU stock are targeting a price of $31 per share, or roughly 18% higher from here. Meanwhile, on the high end, one analyst sees a 70% spurt to $45 per share.

As a group, there are 23 buy ratings and just four holds, with no sells.

Technically speaking, the sky’s the limit for MU stock — kind of. While the stock is off to the races in terms of being well above any of its major moving averages, and not being overbought from a technical perspective, optimists can at least start looking toward the next point of price resistance:

The $36.50 area — last hit in late 2014 before the bottom fell out of Micron shares.

Also worth pointing out is that Micron is among the last of the big chipmakers to report. Intel Corporation (NASDAQ:INTC) and Nvidia Corporation (NASDAQ:NVDA) have struggled this year, but even Advanced Micro Devices, Inc. (NASDAQ:AMD), though up solidly year-to-date, has had a couple of major bumps, while Micronstock  has mostly skated through the year.

Again, looking even further out, there’s more optimism out of Credit Suisse, specifically on the industry demand side of things:

“Our industry supply/demand model points to tight DRAM thru 2017, tight NAND thru at least the calendar third quarter of 2017. Our calendar year 2017 DRAM/NAND year over year (y/y) bit growth of 18%/40% still valid despite the possibility of incremental capacity – our upside case for DRAM/NAND y/y bit growth is 20%/50%. While pricing trends may begin to level off, even against our upside bit growth, we would expect MU margins to expand throughout the year.”

Micron’s Q2 earnings report is due out shortly after Thursday’s closing bell. For those looking for a trading solution, Chris Tyler offers up an idea on MU stock.

As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/micron-earnings-what-do-the-pros-want/.

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