The Rise of Micron Technology: A Look at the Third-Quarter Earnings Report for Fiscal Year 2024
Key Takeaways
- Micron Technology is set to release its third-quarter earnings report for the 2024 fiscal year after the bell on Wednesday.
- The company is expected to report a profit for the quarter, compared to a loss in the year-ago period as revenue grows, according to analyst estimates compiled by Visible Alpha.
- Investors will likely be watching for strong guidance driven by exposure to artificial intelligence (AI) chips.
- Micron could also provide insights on how its ties to Nvidia could help the company.
Micron Technology (MU) is gearing up to announce its third-quarter earnings for the 2024 fiscal year after the bell on Wednesday. Investors are eagerly awaiting updates on how the company is poised to benefit from the increasing demand for artificial intelligence (AI) and its partnership with AI powerhouse Nvidia (NVDA).
Analysts have projected Micron’s revenue to reach $6.7 billion for the third quarter of fiscal 2024, showing growth from both the previous quarter and the year-ago period. Net income is expected to be $399.39 million, a significant improvement from the loss of $1.9 billion in the fiscal third quarter of 2023. Diluted earnings per share (EPS) are anticipated to come in at 30 cents, up from a loss of $1.73 per share in the same period a year earlier.
| Analyst Estimates for Q3 FY 2024 | Q2 FY 2024 | Q3 FY 2023 | |
| Revenue | $6.7 billion | $5.82 billion | $3.75 billion |
| Diluted Earnings Per Share | 30 cents | 71 cents | ($1.73) |
| Net Income | $399.39 million | $793 million | ($1.9 billion) |
Key Metric: Strong Guidance on AI Exposure
Analysts at J.P. Morgan and Citi are optimistic about Micron’s potential and expect the company to announce robust guidance for the fourth quarter, which could excite investors and drive the stock price higher.
J.P. Morgan analysts anticipate that Micron will provide higher-than-expected guidance for the upcoming quarter. They believe that DRAM and NAND storage technology pricing will continue to increase through 2024 into 2025, with strong high-bandwidth memory (HBM) bit shipment and pricing visibility extending into 2026.
Citi analysts also expect Micron to outperform consensus expectations due to the DRAM upturn and the company’s expanding exposure to AI memory. They project fourth-quarter revenue guidance to be $8 billion and have raised their price target for Micron stock to $175 from $150.
Business Spotlight: Nvidia Partnership
One of Micron’s key partnerships is with Nvidia, a leading AI chipmaker. Micron provides memory solutions for Nvidia’s AI chips, including high-bandwidth memory chips used in Nvidia’s AI graphic processing units (GPUs). This collaboration positions Micron to benefit from Nvidia’s success in the AI market.
J.P. Morgan highlighted Micron’s strong HBM ramp into Nvidia GPUs as a contributing factor to their positive outlook on Micron’s future performance.
As of Monday’s close, Micron shares have surged more than 62% since the beginning of the year, reaching $139.01.
In conclusion, Micron Technology’s upcoming earnings report for the third quarter of fiscal year 2024 is highly anticipated by investors and analysts alike. With expectations of strong revenue growth, improved profitability, and promising guidance driven by AI exposure and partnerships like Nvidia, Micron is poised for continued success in the ever-evolving tech industry.
Read the original article on Investopedia.
