Micron Technology, Inc. (NASDAQ: MU) is a leading player in innovative memory solutions. Since its creation over 45 years ago, the company has made a significant contribution to the advancement of memory technology. Its storage systems are utilized in a wide range of applications.
Micron Technology Earnings Report Tops Estimates
Micron Technology released its fiscal Q1 2024 earnings report on December 20, 2023, beating analysts’ estimates. Soon after the report came out, the company’s stock rose 2% during extended hours trading on Wednesday, December 21, 2023.
The company reported an EPS of -$0.95 and a revenue of $4.73 billion. Its cash flow from operations stood at $1.4 billion for Q1. In November, the company raised its Q1 guidance, citing improving supply and demand metrics as well as pricing. The reported figures were higher than the analysts’ estimate of a $1.01 loss and a revenue of $4.63 billion.
In the guidance section, the company projected a revenue of $5.1 billion to $5.5 billion, with a midpoint higher than the analysts’ estimate of $4.99 billion for Q2 2024. The company projected a loss of $0.21 to $0.35 per share, higher than the analysts’ estimate of -$0.62. Its forecast for adjusted gross margins is 11.5% to 14.5% for the quarter.
For FY24, Micron Technology forecast a positive year, citing signs of a recovery in the smartphone sector. Additionally, it forecasts PC sales will grow in the low to mid-single-digit percent range in 2024. Additionally, it forecast server sales will to rise by a mid-single-digit percent.
The company forecasts that spending for FY24 will be slightly higher than 2023, projecting expenditures of $7.5 billion to $8 billion.
Stock Performance
Micron (MU) stock is valued at $86.51 per share after rising 1.21% during early morning trading on December 22, 2023. The company has a market cap of $95.484 billion and is trading close to its 52-week high of $86.78 per share.
MU Stock Forecast
MU stock’s current price of $86.51 is above its 50 and 200-day moving average of $73.94 and $67.21, respectively. That is an important metric that often signals a potential upside for a stock.
Based on its current performance, analysts have given the stock a buy rating. They have set a high target of $140 and a low of $65 for the stock. It has an average price target of $92.87, which is an upside of 7.41% based on its last price.
Should You Buy Micron Technology Stock?
As macroeconomic conditions improve, it often leads to increased consumer spending, with spending on electronics being one of the main categories. Micron Technology is strategically placed to benefit from this increased spending.
Consequently, the forecast increase in sales by the company is accurate. Its buy rating by analysts is an accurate representation of the future of MU stock.
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