Micron Technology will release its financial report after the close of the U.S. stock market on Wednesday, September 30th. At that time, the market will see whether this memory chip manufacturer will be able to overcome a very high hurdle.
Market expectations for Micron's financial report indicate that its earnings per share for the fourth fiscal quarter are approximately $31.52, which is higher than the $3.03 from the same period last year; revenue is expected to be around $50.6 billion. According to TipRanks data, the average target price for MU stock is $1,563.93. The outlook for Micron's stock and the stock price reaction after the MU financial report will likely depend on management's statements for the next quarter.
Micron's financial report, MU stock prospects and target price after the financial report
Micron's financial report is approaching: What are Wall Street's expectations?
As Micron is about to release its financial report, and given the guidance provided by the company in June which set the tone, the market expectations are quite high. In June, management estimated revenue to be $50 billion, with a range of plus or minus $1 billion; adjusted earnings per share to be $31, with a range of plus or minus $1 dollar; and a gross margin of around 86%. Wall Street's expectations for Micron's financial report are slightly higher than the midpoint of this range.
MU also had strong financial performance in the past, with revenue reaching $41.46 billion in the third fiscal quarter and an adjusted earnings per share of $25.11.
Micron's CEO Sanjay Mehrotra stated in June that the company achieved record results in the third fiscal quarter and has a more robust outlook for the fourth fiscal quarter."Reflects the strategic value of memory in the AI era."
Analysts have different opinions on the timing and target price related to NVIDIA.
MU stock closed at $1,082.28 on Friday, September 25, up 16% from the previous month, but still about 14% lower than its 52-week high of $1,255.
As Micron's financial report is about to be released, this round of gains indicates that the market's tolerance for disappointing results is limited. Analyst Mehdi Hosseini pointed out that there is still uncertainty as to when the revenue generated by the new generation of NVIDIA products will be realized. Sales that were originally expected this year may be postponed until next year.
Wells Fargo also lowered the target price of MU stock from $1,525 to $1,400 on Wednesday, but maintained a 'overweight' rating.
Other investment banks continued to be bullish and updated their views before Micron's financial report. Citibank raised its target price for MU shares from $1,150 to $1,300 and maintained a "buy" rating. Analyst Atif Malik pointed out that the price of DRAM is stronger and supply is tightening. Rosenblatt's Kevin Cassidy reiterated the "buy" rating and a target price of $1,500.
BMO Capital Analyst Harsh Kumar reiterates the "buy" rating and a target price of $1,300, stating:"As demand continues to exceed supply, the memory market is still in a supercycle, and this situation will continue throughout the calendar year of 2027."
Goldman Sachs analyst James Schneider is more cautious, giving a 'hold' rating and a target price of $1,100, but he still expects Micron to announce:"Another strong quarter."
Micron's financial report is approaching: What factors could drive the stock price?
As Micron's financial report is about to be released, the market is not only concerned with the quarterly figures. Chief Financial Officer Mark Murphy stated in June that Micron's balance sheet:“Never has it been this strong before.”
Micron also signed 16 strategic customer agreements. These multi-year agreements provide the company with better performance visibility and are also conducive to the prospects of Micron's stock. In mid-September, the company also showcased a 512GB DDR5 server module, with plans to achieve mass production in the second half of 2027.
Many traders have also set their sights beyond this quarter, directly focusing on the guidance for the fiscal year 2027. NAND and DRAM are likely to maintain a tight supply situation until 2027, which supports the prospects for Micron's stock. However, if there are changes in the timing of revenue recognition related to NVIDIA, or if profit margins fall below market expectations for Micron's financial reports, profit-taking may occur quickly.
As of the time of publication, the market generally expects Micron to present a strong financial report. Therefore, the stock price reaction after the MU financial report may ultimately depend on the company's guidance. For investors who hold shares in Micron before the release of its financial report, the next few trading days could be quite volatile.
