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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.
Micron Earnings Expectations and Financial Outlook
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.
Looking ahead, the consensus for Micron’s fiscal first quarter of 2025 is even more optimistic, with analysts projecting revenue of $8.4 billion and EPS of $1.45. These expectations underscore the growing confidence in Micron’s ability to capitalize on emerging trends, particularly in the AI sector.
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What to Look Out for in Micron’s Q4 Results?
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.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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