Micron Technology's Upcoming Q1 Earnings: Analyst Insights and Expectations

Micron Technology (NASDAQ:MU) aims to replicate the success of Broadcom, which recently experienced a surge in its share price following a strong quarterly earnings report.

Based in Boise, Idaho, Micron is set to release its first-quarter financial results on Wednesday after the market closes. Analysts project that Micron will report revenue of $8.72 billion for the first quarter, a notable increase from the $4.73 billion reported in the same period last year, as indicated by data from Benzinga Pro.

Micron has consistently surpassed analyst revenue expectations, achieving this in six consecutive quarters and seven out of the last ten quarters overall.

Expectations also point to first-quarter earnings per share (EPS) hitting $1.76, a significant improvement from a loss of $0.95 per share during the first quarter of last year. The company has successfully beaten EPS estimates in three straight quarters, holding up to seven times in the past ten quarters.

Micron has provided guidance suggesting first-quarter revenue could range from $8.5 billion to $8.9 billion, with earnings per share expected between $1.66 and $1.82.

Analysts’ Perspectives: According to Wedbush analyst Matt Bryson, the forthcoming financial results are likely to meet or exceed analyst estimates. He notes that favorable pricing and product mix have boosted Micron's first quarter, though the second quarter may face more challenges in meeting similar expectations.

Notably, Bryson believes that the anticipated pressure could be mitigated by product mix, suggesting that the risks to current first-quarter estimates might be relatively modest. Beyond the second quarter, he predicts a robust second half of the fiscal year for Micron, driven by "favorable memory economics."

Furthermore, Bryson identifies an exceptionally negative sentiment surrounding memory, which opens opportunities for significant stock price increases should Micron's results and guidance align with expectations. A more favorable product mix, combined with indications of a normalization in memory inventory levels, could also positively impact Micron's future performance.

Stifel has also reiterated a Buy rating for Micron, with a price target set at $135 ahead of the earnings announcement.

Key Areas to Monitor: Micron will be closely watched as the semiconductor industry gains attention in 2024. Recent shifts in performance within the sector, notably Nvidia's recent declines against Broadcom's earnings-based rally, make the situation more intriguing.

Micron's stock was recently buoyed by news of a $6.1 billion investment from the White House aimed at advancing memory chip facilities in the U.S. This investment is part of a broader push to support the semiconductor sector, benefiting jobs and reducing reliance on imports.

Investors and analysts alike will be tuning in for insights regarding government backing and statements related to the upcoming White House administration, expected to commence in 2025. Additionally, guidance for the company's next fiscal year will be a primary concern, following the first-quarter results.

CEO Sanjay Mehrota expressed optimism during the previous quarter's report, noting, "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." Such optimistic sentiments are what investors hope to hear again on Wednesday.

Stock Performance: As of Tuesday, Micron's stock has seen a 1% increase, bringing its price to $108.82. This sits within a 52-week trading range of $78.63 to $157.54, with the stock having risen 32% year-to-date in 2024.

Micron, Earnings, Semiconductor