About Micron's Earnings Outcomes And Upward Projections | MU Stock

Micron Technology (MU) reported fiscal Q3 non-GAAP diluted earnings Wednesday June 26th 2024 of $0.62 per share, compared with a loss of $1.43 a year earlier. Analysts polled by Capital IQ expected EPS of $0.53.
Revenue for the quarter ended May 30 was $6.81 billion, up from $3.75 billion a year earlier. Analysts surveyed by Capital IQ expected $6.67 billion.
The company said it expects fiscal Q4 non-GAAP EPS of $1.08, plus-minus $0.08. Analysts surveyed by Capital IQ expect $1.04.

The company expects revenue for the quarter of $7.0 billion, plus-minus $200 million. Analysts polled by Capital IQ expect $7.58 billion.---4:23 PM ET, 06/26/2024 - MT Newswires.


We believe Micron has more strength to come in the next two years as it benefits from rebounding prices in both DRAM and NAND memory chips after steep downturns in 2023.
We expect Micron to also see upside to the underlying DRAM market rebound as it develops rising penetration in high-bandwidth memory, or HBM, which is an input into graphics processing units, or GPUs, from the likes of Nvidia that run artificial intelligence models. Still, we believe Micron will continue to be prone to memory market cyclicality (as seen in 2023) over the long term, and we forecast more tepid growth after fiscal 2025. We continue to see shares as overvalued and recommend investors
seek a better entry point. February-quarter sales rose 58% year over year and 23% sequentially to $5.8 billion, well ahead of company guidance. We credit Micron’s DRAM sales for the beat, which are benefiting from improving
market prices and the firm’s adoption by Nvidia as a second source for HBM in its GPUs, like the new B200.--Analyst Note William Kerwin, CFA, Equity Analyst, 21 Mar 2024.

Bulls Say William Kerwin, CFA, Equity Analyst, 21 Mar 2024:
When memory markets are in an upswing and demand is strong, Micron’s sales growth and profitability can be impressive.
Micron is a major producer of DRAM and NAND chips with healthy market share positions, allowing it to benefit from secular trends toward AI, 5G, and connected cars.
We like Micron’s shareholder returns and view its balance sheet as strong for a cyclical firm.
Bears Say William Kerwin, CFA, Equity Analyst, 21 Mar 2024:
Micron has a high fixed cost base that leaves it vulnerable to underutilization charges and major profit compression when memory markets enter a downturn.
We see DRAM and NAND as commoditylike products, and we foresee little ability for Micron to build durable differentiation against its competitors.
Micron has meaningful China exposure and bears the risk of further restrictions out of that market hampering its sales.

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