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Micron shares lag despite Nasdaq uptick, analysts adjust forecasts

EditorHari Govind
Published 11/16/2023, 08:52 AM
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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NEW YORK - Shares of Micron Technology Inc. (NASDAQ:MU) ended Wednesday's trading session slightly lower, despite a modest gain in the Nasdaq Composite. Closing at $77.14, Micron's stock dipped by 0.04% from its previous day's position, trailing behind the S&P 500's advance of 0.16% and the Dow Jones Industrial Average's rise of 0.47%. Despite the daily lag, Micron experienced a notable monthly climb of 11.84%, surpassing both the Computer and Technology sector's increase of 5.61% and the S&P 500's gain of 4.02%.

Looking ahead, analysts have set expectations for Micron's upcoming financial results, forecasting earnings to fall at -$1.02 per share, which would represent a significant year-over-year decline of 2450%. Conversely, revenue is anticipated to reach $4.43 billion, marking an increase of 8.54% from the same quarter in the previous year.

For the full fiscal year, Zacks Consensus Estimates suggest that Micron may see earnings of -$1.93 per share and revenue totaling $20.92 billion. These projections indicate a positive shift from the prior fiscal year, with earnings expected to improve by 56.63% and revenue to grow by 34.63%.

The recent adjustments made by analysts to their estimates for Micron are said to mirror near-term business trends, providing insights into the company's potential business trajectory. Currently, Micron holds a Zacks Rank of #3 (Hold), indicating a neutral position recommended by analysts. Within its industry context, the Semiconductor Memory industry is ranked at number 94 by Zacks Industry Rank, placing it well within the top half of all tracked industries at the 38th percentile.

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InvestingPro Insights

According to InvestingPro, Micron Technology Inc. (NASDAQ:MU) has a market capitalization of $84.7 billion. The company's P/E Ratio stands at -14.41, indicating the company has been operating at a loss. The revenue for the last twelve months as of Q4 2023 was $15.54 billion, indicating a significant contraction of 49.48% from the previous period.

InvestingPro Tips suggest that while Micron is a prominent player in the Semiconductors & Semiconductor Equipment industry, it has been grappling with declining revenue and weak gross profit margins. The stock generally trades with low price volatility and is currently in overbought territory, as indicated by the Relative Strength Index (RSI). Despite these challenges, the company's liquid assets exceed its short-term obligations, suggesting a solid financial footing.

InvestingPro offers additional tips and insights for Micron and other companies. For instance, there are 14 additional tips for Micron that can provide a more comprehensive understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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