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What you need to know before Micron's earnings report

UPDATE – September 25, 2024: This article has been updated to reflect more recent analyst estimates and share price information.

Key findings

  • Micron Technology will announce fourth-quarter results after the market closes on Wednesday.
  • Analysts expect the memory chip maker and Nvidia partner to reach profitability and report higher revenues compared to the previous year.
  • Investors will also likely be paying attention to updates on Micron's inventory levels.

Micron Technology (MU) will report fourth-quarter results after the market closes on Wednesday. Analysts expect the memory chip maker and its partner Nvidia (NVDA) to post a profit.

Wall Street expects the company to report net income of $1 billion for the quarter, compared to a loss of $1.43 billion a year earlier. According to estimates by Visible Alpha, revenue is expected to almost double to $7.65 billion.

Analyst estimates for Q4 2024 3rd quarter 2024 4th quarter 2023
revenue 7.65 billion US dollars 6.81 billion US dollars 4.01 billion US dollars
Diluted earnings per share (loss) 84 cents 30 cents (1.31 USD)
Net profit (loss) 1 billion US dollars 332 million US dollars (1.43 billion US dollars)

Key metric: Inventory

Micron is struggling with growing inventories and analysts at Citi recently lowered their price target for the stock from $175 to $150, citing high inventories and weak demand for older memory components.

However, the analysts said the inventory buildup could ease by year-end, adding that they “expect Micron's revenue and gross profit to increase in the coming quarters.”

According to Visible Alpha, the analyst consensus for Micron's first fiscal quarter of 2025 is revenue of $8.4 billion and earnings per share of $1.45.

Business Spotlight: Demand Signals

Morgan Stanley analysts also cut their price target for Micron from $140 to $100 ahead of the company's earnings report, citing high inventory levels and signs of “continued weak demand in all end markets except AI.”

Micron could see increasing demand next year, the analysts said, driven by “an AI-driven upgrade cycle for edge devices, continued strength in data centers and the potential for a refresh of traditional servers.”

Micron's share price was nearly unchanged in premarket trading on Wednesday ahead of the release of the company's earnings report and has gained about 10% since the beginning of the year.

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