Micron Expertise reported stronger-than-expected 1Q outcomes, pushed by sturdy demand for its reminiscence chips. Shares of the reminiscence chip maker gained 1.3% in Thursday’s prolonged market buying and selling.
Micron’s (MU) 1Q gross sales elevated 12.2% to $5.77 billion year-on-year and surpassed analysts’ expectations of $5.73 billion. Its adjusted EPS of $0.78 grew a stellar 62.5% year-over-year and beat the Road’s estimates of $0.71.
Buoyed by better-than-expected first-quarter efficiency, Micron issued a powerful outlook for 2Q. The corporate expects revenues of $5.8 billion (+/- $200 million), which is above the consensus estimate of $5.52 billion.
Micron forecasted 2Q adjusted EPS of $0.75 (+/- $0.07) in comparison with the $0.63 per share estimated by analysts. (See MU stock analysis on TipRanks)
Following the earnings launch, Mizuho Securities analyst Vijay Rakesh raised the inventory’s value goal to $92 (16.3% upside potential) from $85 and reiterated a Purchase score.
In a observe to traders, Rakesh wrote, “We see MU well-positioned for a stronger 2021 with a DRAM (dynamic random entry reminiscence) (70% of revenues) inflection as low stock, managed capex, and powerful demand traits in cell and enhancing 2021 knowledge middle outlook drive DRAM ASP (common promoting value) upside mixed with 2H21 NAND stabilization.”
Total, consensus amongst analysts is a Sturdy Purchase as 20 analysts assign a Purchase score, whereas 1 analyst says Maintain. The typical price target of $86.90 implies upside potential of round 9.9% over the subsequent 12 months. Shares have superior 35.8% over the previous yr.
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