- Micron Technology has increased its fourth quarter adjusted revenue forecast to a range of $11.1 billion to $11.3 billion, surpassing previous expectations of $10.4 billion to $11 billion. The estimated figure was $10.76 billion.
- The adjusted earnings per share (EPS) forecast has been boosted to $2.78 to $2.92, compared to prior guidance of $2.35 to $2.65. This also exceeds the EPS estimate of $2.52.
- Micron anticipates an adjusted gross margin of 44% to 45%, which is an improvement over the earlier forecast of 41% to 43%. The estimate was 42.1%.
- The company’s revised adjusted operating expenses are projected to be between $1.21 billion to $1.24 billion, a slight increase from the earlier expectation of $1.18 billion to $1.22 billion. The estimate aligns at $1.21 billion.
- Micron attributes these improved forecasts to better pricing, especially in the DRAM segment.
- As a result of this positive outlook, shares of Micron rose by 3.9% in pre-market trading, reaching $123.55, with 157,593 shares changing hands.
- Analyst recommendations consist of 37 buys, 8 holds, and 2 sells on Micron stock.
Micron Technology on Smartkarma
Analyst coverage of Micron Technology on Smartkarma is positive and indicates potential for significant growth. Nicolas Baratte highlights Micron’s strong results and guidance driven by the rapid growth of HBM, with expectations of substantial revenue increases in the future. Consensus forecasts for FY27 are deemed too conservative, underestimating Micron’s future growth potential.
Furthermore, analysts like William Keating emphasize Micron’s impressive Q325 earnings, with NAND experiencing a surprising rebound and HBM already achieving a $6 billion annual run rate. Vincent Fernando, CFA, notes that Micron’s AI products are driving strong results, although the broader memory supply chain recovery remains gradual. Overall, analysts are optimistic about Micron’s performance, particularly due to its strategic positioning in HBM and favorable market conditions.
A look at Micron Technology Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors looking at Micron Technology, Inc. for the long term can take encouragement from its Smartkarma Smart Scores, which paint a positive picture overall. The company is seen as having strong momentum and resilience, indicating a solid foundation. With a moderate outlook on value and growth, Micron Technology shows potential in these areas. However, the lower score in dividends suggests that the company may not be a top choice for income-seeking investors.
Micron Technology, a key player in the semiconductor industry, is known for its production and marketing of various memory chips and semiconductor components. Based on its Smartkarma Smart Scores, the company displays strengths in areas such as momentum and resilience, which bodes well for its long-term prospects. While there is room for improvement in value and growth, Micron Technology‘s diverse product line and market presence position it as a contender for investors seeking stability and growth potential in the tech sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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