Micron Technology Q1 Earnings Preview: Analyst Insights and Outlook

Micron Technology (NASDAQ: MU) aims to emulate the recent success of Broadcom, which saw its stock price rise following a strong quarterly earnings report.

Based in Boise, Idaho, Micron is set to release its first-quarter financial results after the markets close on Wednesday. Analysts anticipate that the company will report first-quarter revenue of approximately $8.72 billion, a significant increase from $4.73 billion in the same quarter last year, as indicated by data from Benzinga Pro.

Micron has consistently exceeded analyst revenue estimates, achieving this feat in six out of the last six quarters and in seven of the last ten quarters overall.

In terms of earnings, analysts predict that Micron will report earnings per share (EPS) of $1.76, a noteworthy improvement compared to a loss of 95 cents per share in the first quarter of the previous year. Moreover, the company has surpassed EPS estimates from analysts in three consecutive quarters and in seven of the last ten.

Micron's guidance for the upcoming quarter suggests a revenue range of $8.5 billion to $8.9 billion and an EPS between $1.66 and $1.82.

Analyst Opinions

Expectations for Micron's first-quarter results are optimistic, with Wedbush analyst Matt Bryson noting that the quarter has benefitted from favorable pricing and product mixes. However, Bryson cautioned that the second quarter might present challenges in meeting or exceeding estimates.

Despite potential pressures in the second quarter, Bryson believes that a favorable product mix could mitigate risks to the current forward estimates.

Looking beyond the next quarter, Bryson is optimistic about the second half of Micron's fiscal year, citing "favorable memory economics" that could bolster the company's performance.

He also commented on the overall sentiment regarding memory stocks, which has been quite negative, suggesting that there is room for a sharp increase in Micron's stock if the upcoming results and guidance align with expectations.

Furthermore, an advantageous product mix and indications of normalizing memory inventory levels are anticipated to contribute positively to Micron's performance moving forward.

Many analysts, including Stifel, maintain a positive outlook on the company, with a recent reiteration of a Buy rating and a price target of $135 ahead of the earnings report.

Sector Context

Micron's earnings report comes at a time when the semiconductor sector is attracting considerable attention. Recently, Nvidia has faced declines, while Broadcom has experienced a surge in its stock value following its own earnings report.

Micron shares have been positively influenced by a $6.1 billion investment from the White House aimed at supporting new advanced memory chip facilities. The semiconductor industry has garnered significant government interest as a key sector to enhance U.S. job creation and reduce dependencies on imports.

Investors and analysts will be closely monitoring the upcoming report for insights into government support and comments regarding the next administration set to assume office in 2025.

Furthermore, the guidance for the company's next fiscal year will be a crucial aspect for stakeholders, especially following the first quarter's results.

Sanjay Mehrota, the CEO of Micron, expressed optimism in the company's positioning, stating, "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," following the fourth-quarter results.

This sentiment will likely be a focal point of interest when Micron releases its earnings on Wednesday.

Current Stock Performance

As of Tuesday, shares of Micron are trading up by 1%, settling at $108.82. The stock has shown strong growth, increasing by 32% year-to-date in 2024, while the 52-week trading range has been between $78.63 and $157.54.

As the semiconductor industry continues to evolve, investors will be looking for solid indicators of growth and stability in Micron's upcoming earnings report.

Micron, Earnings, Semiconductor