Micron rises 6% as effects, forecast simply most sensible expectancies; Citi sees extra upside By means of Making an investment.com

© Reuters Micron (MU) rises as effects, forecast simply most sensible expectancies

(Up to date – December 21, 2023 5:10 AM EST)

Micron (MU) inventory was once up 6% in pre-market Thursday after the chipmaker reported effects for the primary quarter that beat the typical analyst estimate.

Micron mentioned its gross sales rose 16% year-over-year to $4.73 billion, simply forward of the consensus of $4.55 billion. The corporate additionally reported an adjusted working lack of $955 million, which is best than the predicted adjusted source of revenue of $1.05 billion.

Consequently, Micron’s adjusted loss in step with percentage for the primary quarter got here in at 95 cents, topping the consensus of -$1.01.

“Micron’s sturdy execution and pricing drove better-than-anticipated first quarter monetary effects,” mentioned Micron Generation (NASDAQ:) President and CEO Sanjay Mehrotra.

“We predict our trade basics to support all through 2024, with document business TAM projected for calendar 2025.”

For this quarter, Micron sees FQ2 loss in step with percentage at $0.28 (up or down 7 cents), simply forward of the predicted lack of 62 cents. 2d-quarter income is predicted at $5.3 billion, whilst analysts have been on the lookout for $5.03 billion.

Citi analysts reiterated a Purchase score and raised the fee goal by means of $7 to $95 in step with percentage “given the DRAM upturn and expectancies of persisted upside.”

In a similar fashion, Evercore ISI analyst Matthew Prisco lifted the objective by means of $10 to $100 in step with percentage.

“This was once a cast Q for Micron as pricing and margin growth stay the important thing variables in inventory efficiency, and in those spaces the corporate stunned to the upside,” Prisco mentioned in a observe.

“With $11+ in income energy increasingly more achievable in CY25 according to provide/call for and ensuing pricing/margin dynamics, we’re expanding our worth goal to $100 (from $90) – representing a ~9x P/E a couple of. MU stays a Most sensible Pick out and we reiterate our Outperform score into this Reminiscence upcycle.”