Micron Technology MU will look to follow the fate of Broadcom, which recently got a boost in share price after its quarterly earnings.
The Boise, Idaho-based company will report first-quarter financial results after the market closes on Wednesday. Analysts expect Micron Technology to report first-quarter revenue of $8.72 billion. That’s up from $4.73 billion in last year's first quarter, according to data from Benzinga Pro.
The company has beaten analyst revenue estimates in six straight quarters and seven of the last 10 quarters overall.
Analysts also expect the company to report first-quarter earnings per share of $1.76 — up from a loss of 95 cents per share in last year's first quarter. The company has beaten analyst estimates for earnings per share in three straight quarters and seven of the last 10 quarters overall.
Guidance from the company calls for first-quarter revenue of $8.5 billion to $8.9 billion and earnings per share of $1.66 to $1.82.
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What Analysts Are Saying: First-quarter financial results should meet or beat analyst estimates, Wedbush analyst Matt Bryson said in a new investor note.
The analyst said Micron's first quarter benefitted from favorable pricing and product mixes. The second quarter could be tougher to meet or beat estimates.
"We believe some of this pressure could be offset by mix, meaning risk to our current FQ2 forward estimates might be relatively modest," Bryson said.
Outside of the second quarter, Bryson expects a strong back half of Micron's fiscal year due to "favorable memory economics."
"We believe sentiment on memory was extremely negative creating room for a potential sharp move upwards in the stock should MU results/guidance roughly fit the expectations."
A more favorable product mix and signs of normalization of memory inventory could also benefit Micron in the future.
"We don't have a strong view on MU into the print, but believe the company is well positioned heading into 2025."
Stifel recently reiterated a Buy rating with a $135 price target ahead of Micron's earnings print also.
Key Items to Watch: Micron's report comes as the semiconductor sector has been in focus in 2024. Leader Nvidia has fallen in recent days while Broadcom soared after its earnings report.
Micron shares received a boost after the White House invested $6.1 billion for new advanced memory chip facilities was announced.
The semiconductor industry has been a prime sector for government investments to help support U.S. jobs and growing the market share of the sector in the country to lessen the need for imports from other countries.
Investors and analysts will be closely watching Wednesday's report for more color on government support and commentary on the next White House administration set to begin in 2025.
The company's next fiscal year will also be a key focus for investors and analysts with an update on guidance after the first quarter.
"We are entering fiscal 2025 with the best competitive positioning in Micron's history. We forecast record revenue in fiscal Q1 and a substantial revenue record with significantly improved profitability in fiscal 2025," Micron CEO Sanjay Mehrota said after the fourth-quarter financial results.
Investors and analysts will be looking for the same optimism Wednesday.
Price Action: Micron stock is up 1% to $108.82 on Tuesday, versus a 52-week trading range of $78.63 to $157.54. Micron stock is up 32% year-to-date in 2024.
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