Micron Technology (NASDAQ: MU) is set to report its fiscal fourth-quarter earnings after the market closes on Wednesday, September 25, 2024. The report comes at a crucial time for the memory chip maker, as it navigates a complex landscape of artificial intelligence (AI) opportunities and persistent challenges in traditional markets.
Earnings Expectations and Forecasts
Analysts are anticipating a significant turnaround for Micron in the fourth quarter of fiscal 2024. Revenue is expected to nearly double year-over-year, reaching $7.65 billion, representing a more than 90% increase from the prior-year quarter. The company is projected to swing from a loss to a profit, with analysts forecasting earnings per share (EPS) of $1.11, compared to a loss per share of $1.07 in the same quarter last year. This translates to an expected net income of $1 billion, a stark contrast to the $1.43 billion loss reported a year earlier.
What to Expect from Micron’s Q4 Report?
As investors and analysts prepare for Micron’s earnings report, several key areas are drawing attention. Inventory levels remain a concern, with the company grappling with growing stockpiles. However, Citi analysts suggest that this inventory buildup could ease by year-end. Demand signals across different end markets will be closely watched, with Morgan Stanley analysts noting “persistently weak demand across all end markets except AI.” The AI sector emerges as a bright spot for Micron, with the company’s high-bandwidth memory (HBM) offerings expected to drive growth. However, challenges persist in the non-AI PC and smartphone markets, potentially leading to near-term pricing pressures. Despite these headwinds, Micron has a track record of outperforming expectations, having exceeded analysts’ earnings forecasts in seven of the past nine quarters. In the stock market, Micron shares have gained about 10% year-to-date, reflecting cautious optimism among investors. Options traders are pricing in a potential 9.82% move following the earnings report, indicating heightened market interest in the company’s performance and outlook.
Conclusion
Micron’s anticipated fourth-quarter report is a pivotal moment for the company as it seeks to bolster its position in the burgeoning AI market. Analysts and investors are closely monitoring the metrics despite ongoing challenges in traditional markets. The positive forecasts and growing interest in the company’s stock indicate a high level of expectations.
Micron’s anticipated fourth-quarter report is a pivotal moment for the company as it seeks to bolster its position in the burgeoning AI market. Analysts and investors are closely monitoring the metrics despite ongoing challenges in traditional markets. The positive forecasts and growing interest in the company’s stock indicate a high level of expectations.
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