Shares of semiconductor major Micron (NASDAQ:MU) turned lower at the time of writing despite the company raising its outlook for the first quarter.
Buoyed by improved supply and demand balance and pricing gains, the company now expects revenue for the quarter to reach $4.7 billion. Earlier, it had guided for a revenue range of $4.4 billion, +/-$200 million. Further, non-GAAP gross margin is anticipated to approach breakeven, compared to the previous outlook of -4%, +/-2%.
Moreover, EPS for the quarter is seen landing at -$1. In comparison, the prior outlook had pegged EPS at -$1.07, +/-$0.07. Additional updates from the company’s top brass are awaited in a fireside chat at the 2023 UBS Global Technology Conference in Scottsdale, Arizona, today.
Micron is slated to announce its first-quarter results on December 20. Analysts expect the company to generate an EPS of -$1.04 on revenue of $4.40 billion for the quarter. In the comparable year-ago period, Micron’s EPS of -$0.04 had lagged the Street’s expectations by $0.02.
Is MU a Good Stock to Buy?
Despite today’s price decline, shares of the company still remain nearly 34% higher over the past year. Overall, the Street has a Moderate Buy consensus rating on Micron, and the average MU price target of $78.85 implies a modest 5.7% potential upside in the stock.
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