Shares of chipmaker Micron (MU) jumped in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2025 that was accompanied by mixed guidance. Earnings per share came in at $1.56, which beat analysts’ consensus estimate of $1.43 per share. Sales increased by 38.3% year-over-year, with revenue hitting $8.05 billion. This also beat estimates of 7.9 billion.
In addition, the firm reported an adjusted operating income margin of 22%, while operating cash flow came in at $3.94 billion versus the $3.24 billion in the prior quarter and the $1.22 billion for the same period last year.
Q3 2025 Outlook
Micron Technology’s CEO, Sanjay Mehrotra, attributed the solid results to strong data center sales. Mehrotra also highlighted the advancements that Micron has made in memory technology and predicted that revenue in the upcoming quarter will hit a company record. Indeed, revenue is expected to be between $8.6 billion and $9 billion, with the midpoint significantly above the estimated $8.48 billion.
This revenue beat likely led to the jump in share price in after-hours, as it seems like it was enough to overshadow the company’s EPS outlook. For reference, Micron projects adjusted earnings in the range of $1.27 to $1.47 per share – a miss compared to the $1.52 per share consensus estimate.
Investor Sentiment for MU Stock
The sentiment among TipRanks investors is currently Very Negative. Out of the 792,477 portfolios tracked by TipRanks, 3.8% hold MU stock. In addition, the average portfolio weighting allocated towards MU among those who do have a position is 5.36%. This suggests that investors of the company are confident about its future. However, in the last 30 days, 6.1% of those holding the stock decreased their positions.
Is MU a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MU stock based on 14 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average MU price target of $128.40 per share implies 24.7% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
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