Micron (MU) stock was up 6% in pre-market Thursday after the chipmaker reported results for the first quarter that beat the average analyst estimate.
Micron said its sales rose 16% year-over-year to $4.73 billion, easily ahead of the consensus of $4.55 billion. The company also reported an adjusted operating loss of $955 million, which is better than the expected adjusted income of $1.05 billion.
As a result, Micron’s adjusted loss per share for the first quarter came in at 95 cents, topping the consensus of -$1.01.
“Micron’s strong execution and pricing drove better-than-anticipated first quarter financial results,” said Micron Technology (NASDAQ:MU) President and CEO Sanjay Mehrotra.
“We expect our business fundamentals to improve throughout 2024, with record industry TAM projected for calendar 2025.”
For this quarter, Micron sees FQ2 loss per share at $0.28 (up or down 7 cents), easily ahead of the expected loss of 62 cents. Second-quarter revenue is expected at $5.3 billion, while analysts were looking for $5.03 billion.
Citi analysts reiterated a Buy rating and raised the price target by $7 to $95 per share "given the DRAM upturn and expectations of continued upside."
Similarly, Evercore ISI analyst Matthew Prisco lifted the target by $10 to $100 per share.
"This was a solid Q for Micron as pricing and margin expansion remain the key variables in stock performance, and in these areas the company surprised to the upside," Prisco said in a note.
"With $11+ in earnings power increasingly achievable in CY25 based on supply/demand and resulting pricing/margin dynamics, we are increasing our price target to $100 (from $90) - representing a ~9x P/E multiple. MU remains a Top Pick and we reiterate our Outperform rating into this Memory upcycle."