What You Need To Know Ahead of Micron’s Earnings Report Wednesday

Key Takeaways

• Micron Technology will report fiscal fourth-quarter earnings after the bell Wednesday.
• Analysts expect the memory chip maker and Nvidia partner to swing to a profit and post higher revenue year-over-year.
• Investors will also likely be watching for updates on Micron’s inventory levels.

Micron Technology (MU) will report fiscal fourth-quarter earnings after the bell Wednesday, with analysts expecting the memory chip maker and Nvidia (NVDA) partner to swing to a profit.

The Street expects the company to report net income of $975.41 million for the quarter, compared to a loss of $1.43 billion a year earlier. Revenue is projected to nearly double to $7.66 billion, according to estimates compiled by Visible Alpha.  

	Analyst Estimates for Q4 2024	Q3 2024	Q4 2023
Revenue	$7.66 billion	$6.81 billion	$4.01 billion
Diluted EPS (Loss)	84 cents	30 cents	($1.31)
Net Income (Loss)	$975.41 million	$332 million	($1.43 billion)

Key Metric: Inventory

Micron has grappled with growing inventories, and Citi analysts recently lowered their price target for the stock to $150 from $175, citing its high inventory and weakness in demand for legacy memory components.

However, the analysts said inventory buildup could ease by the end of the year, adding they “expect Micron’s revenue and gross margins to increase for the next several quarters.”

The analyst consensus for Micron’s fiscal first quarter of 2025 is revenue of $8.4 billion and EPS of $1.45, according to Visible Alpha.

Business Spotlight: Demand Signals

Morgan Stanley analysts also lowered their price target for Micron to $100 from $140 ahead of the company’s earnings report, pointing to high inventories and signs of “persistently weak demand across all end markets except AI.”

Micron could see demand improve next year, the analysts said, fueled by “an AI-driven upgrade cycle for edge devices, continued strength in datacenters, and the potential for a traditional server refresh.”

Micron shares rose close to 2% to $90.90 Friday and have gained about 6.5% since the start of the year.

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