Micron Technology (MU - Free Report) is likely to beat expectations when it reports second-quarter fiscal 2024 results after market close on Mar 20.
The company projects a fiscal second-quarter adjusted loss of 28 cents per share (+/- 7 cents). The Zacks Consensus Estimate for the bottom line is pegged at a loss of 27 cents per share, significantly narrower than the year-ago quarter’s loss of $1.91.
Meanwhile, Micron estimates revenues of $5.3 billion (+/- $200 million). The consensus mark for revenues is pegged at $5.33 billion, which suggests a 44.4% increase from the year-earlier period’s revenues of $3.69 billion.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being -41.6%.
Let’s see how things have shaped up before this announcement.
Factors to Consider
Micron’s overall second-quarter performance is likely to have benefited from the robust demand for its memory chips used for graphic processing unit (GPU)-enabled artificial intelligence (AI) servers. Datacenter operators are enhancing their capabilities by integrating generative AI and large language models using GPUs. As memory is at the heart of GPU-enabled AI servers, the trend is likely to have boosted Micron’s top-line performance in the to-be-reported quarter.
An improving supply-demand environment is also expected to have aided the company’s second-quarter performance. Substantial customer inventory adjustments across end markets weighed on Micron’s financial performance for several quarters. However, the company witnessed improved supply-demand in the first quarter, which resulted in higher pricing for DRAM and NAND.
The Zacks Consensus Estimate for DRAM revenues is pegged at $3.89 billion for the second quarter, which indicates a year-over-year increase of 42.9%. The consensus mark for NAND revenues stands at $1.39 billion, which implies a whopping 56.6% surge from the year-ago quarter.
Nonetheless, the aforementioned positive factors are likely to have been partially offset by the negative impact of soft consumer spending due to inflationary pressure and growing concerns over the global economic slowdown. Softened consumer spending has resulted in weak memory chip demand from the smartphone and personal computer end markets.
Additionally, the memory chip maker’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. Additionally, a higher mix of lower-margin NAND and a minimal decline in manufacturing costs are expected to have strained margins.
Earnings Whispers
Our proven model predicts an earnings beat for Micron this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (-21 cents per share) and the Zacks Consensus Estimate (-27 cents), is +23.29%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: MU carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Per our model, FactSet Research Systems (FDS - Free Report) , Amprius Technologies (AMPX - Free Report) and Progress Software (PRGS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
FactSet Research is slated to report second-quarter fiscal 2024 results on Mar 21. The company has a Zacks Rank #2 and an Earnings ESP of +0.59% at present. The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 1.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FDS’ second-quarter earnings is pegged at $3.83 per share, which suggests an increase of 0.8% from the year-ago quarter’s earnings of $3.80. FactSet Research’s quarterly revenues are estimated to soar 6.4% year over year to $547.9 million.
Amprius carries a Zacks Rank #3 and has an Earnings ESP of +13.04%. The company is scheduled to report fourth-quarter 2023 results on Mar 21. Its earnings beat the Zacks Consensus Estimate once in the preceding four quarters, matched once and missed on two occasions, the average surprise being 4%.
The Zacks Consensus Estimate for Amprius’ fourth-quarter bottom line stands at a loss of 12 cents per share, significantly wider than the year-ago quarter’s loss of 7 cents. It is estimated to report revenues of $2.6 million, which suggests an increase of 229.1% from the year-ago quarter.
Progress Software carries a Zacks Rank #3 and has an Earnings ESP of +0.44%. The company is scheduled to report first-quarter fiscal 2024 results on Mar 26. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.1%.
The Zacks Consensus Estimate for PRGS’ fourth-quarter earnings is pegged at $1.14 per share, which indicates a year-over-year decrease of 4.2%. The consensus mark for revenues stands at $181.8 million, which calls for a year-over-year rise of 9.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Micron Technology (MU - Free Report) is likely to beat expectations when it reports second-quarter fiscal 2024 results after market close on Mar 20.
The company projects a fiscal second-quarter adjusted loss of 28 cents per share (+/- 7 cents). The Zacks Consensus Estimate for the bottom line is pegged at a loss of 27 cents per share, significantly narrower than the year-ago quarter’s loss of $1.91.
Meanwhile, Micron estimates revenues of $5.3 billion (+/- $200 million). The consensus mark for revenues is pegged at $5.33 billion, which suggests a 44.4% increase from the year-earlier period’s revenues of $3.69 billion.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being -41.6%.
Let’s see how things have shaped up before this announcement.
Factors to Consider
Micron’s overall second-quarter performance is likely to have benefited from the robust demand for its memory chips used for graphic processing unit (GPU)-enabled artificial intelligence (AI) servers. Datacenter operators are enhancing their capabilities by integrating generative AI and large language models using GPUs. As memory is at the heart of GPU-enabled AI servers, the trend is likely to have boosted Micron’s top-line performance in the to-be-reported quarter.
An improving supply-demand environment is also expected to have aided the company’s second-quarter performance. Substantial customer inventory adjustments across end markets weighed on Micron’s financial performance for several quarters. However, the company witnessed improved supply-demand in the first quarter, which resulted in higher pricing for DRAM and NAND.
The Zacks Consensus Estimate for DRAM revenues is pegged at $3.89 billion for the second quarter, which indicates a year-over-year increase of 42.9%. The consensus mark for NAND revenues stands at $1.39 billion, which implies a whopping 56.6% surge from the year-ago quarter.
Nonetheless, the aforementioned positive factors are likely to have been partially offset by the negative impact of soft consumer spending due to inflationary pressure and growing concerns over the global economic slowdown. Softened consumer spending has resulted in weak memory chip demand from the smartphone and personal computer end markets.
Additionally, the memory chip maker’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. Additionally, a higher mix of lower-margin NAND and a minimal decline in manufacturing costs are expected to have strained margins.
Earnings Whispers
Our proven model predicts an earnings beat for Micron this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (-21 cents per share) and the Zacks Consensus Estimate (-27 cents), is +23.29%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: MU carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Per our model, FactSet Research Systems (FDS - Free Report) , Amprius Technologies (AMPX - Free Report) and Progress Software (PRGS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
FactSet Research is slated to report second-quarter fiscal 2024 results on Mar 21. The company has a Zacks Rank #2 and an Earnings ESP of +0.59% at present. The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 1.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FDS’ second-quarter earnings is pegged at $3.83 per share, which suggests an increase of 0.8% from the year-ago quarter’s earnings of $3.80. FactSet Research’s quarterly revenues are estimated to soar 6.4% year over year to $547.9 million.
Amprius carries a Zacks Rank #3 and has an Earnings ESP of +13.04%. The company is scheduled to report fourth-quarter 2023 results on Mar 21. Its earnings beat the Zacks Consensus Estimate once in the preceding four quarters, matched once and missed on two occasions, the average surprise being 4%.
The Zacks Consensus Estimate for Amprius’ fourth-quarter bottom line stands at a loss of 12 cents per share, significantly wider than the year-ago quarter’s loss of 7 cents. It is estimated to report revenues of $2.6 million, which suggests an increase of 229.1% from the year-ago quarter.
Progress Software carries a Zacks Rank #3 and has an Earnings ESP of +0.44%. The company is scheduled to report first-quarter fiscal 2024 results on Mar 26. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.1%.
The Zacks Consensus Estimate for PRGS’ fourth-quarter earnings is pegged at $1.14 per share, which indicates a year-over-year decrease of 4.2%. The consensus mark for revenues stands at $181.8 million, which calls for a year-over-year rise of 9.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Get the latest research report on MU - FREE
Get the latest research report on FDS - FREE
Get the latest research report on PRGS - FREE
Get the latest research report on AMPX - FREE