Micron Technology Q2 Earnings Preview: Results In-Line, Soft Guide Likely

Micron Technology Inc. MU is scheduled to report its fiscal second quarter earnings on Thursday.

The company is likely to report its revenues, gross margins and earnings in-line with consensus expectations, although guidance is expected to be soft, according to JPMorgan.

The Micron Technology Analyst: Analyst Harlan Sur maintained an Overweight rating and price target of $145.

The Micron Technology Thesis: Supported by sustained momentum in HBM demand trends, DRAM pricing trends have been strong, offsetting "softer NAND bit shipments and ASPs resulting from elevated inventory across consumer facing end markets (PC/smartphone)," Sur said in a note.

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Micron Technology is likely to provide soft guidance for the fiscal third quarter, with revenue, gross margin, and earnings short of consensus expectations, he added.

The company continues to have a strong share of key Nvidia Corp.'s NVDA platforms, the analyst stated.

"Consistent with what MU laid out at a recent investor conference, we expect May-Qtr revenue to grow Q/Q on strong bit shipments with gross margin trending lower by a few 100 basis points Q/Q and below consensus expectations," he further wrote.

MU Price Action: Shares of Micron Technology had declined by 2.11% to $100.93 at the time of publication on Tuesday.

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