Micron approximates adjusted earnings per share will amount to 93 cents to 98 cents, up from its previous series of 68 cents to 82 cents. The chipmaker’s stock is up.
Micron Innovation ( MU) – Get Report shares increased Wednesday after the largest U.S. maker of memory chips raised its revenues price quotes for the current quarter, which ends Thursday.
For that fiscal 2021 2nd quarter, the Boise, Idaho, company estimates adjusted incomes per share will total 93 cents to 98 cents, up from the variety of 68 cents to 82 cents in its previous forecast.
It also projects revenue of $6.2 billion to $6.25 billion for the most recent quarter, up from its prior quotes of $5.6 billion to $6 billion.
Micron sees a gross margin of 26% to 27%, up from 24% to 26%.
Micron recently traded at $91.43, up 0.4%. It has traded on Wednesday as high as $93.33, up 2.5%. And it has jumped 79% over the past year, as the COVID pandemic spurred a need for innovative products.
TheStreet.com Founder Jim Cramer expressed enthusiasm about the stock in January but at lower levels.
Morningstar expert Abhinav Davuluri in January put reasonable value for the business at $65. However, he likes the business.
“We believe Micron is well-positioned to delight in double-digit revenue development in fiscal 2021, thanks to increased memory material related to AI, cloud, 5G, and brand-new video game consoles,” he composed.
“As a result, we are raising our fair worth quote to $65 per share from $50 per share for no-moat Micron,” he wrote after the company’s Jan. 8 profits report.
To be sure, “as Micron operates in the extremely competitive and cyclical memory space, we think its long-lasting profitability will be rather unstable, though current debt consolidation has helped alleviate the sharp swings Micron and its peers have experienced traditionally,” Davuluri said.