Shares of chip maker Micron (NASDAQ:MU) plunged in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2024. Earnings per share came in at $0.62, which beat analysts’ consensus estimate of $0.48 per share.
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Sales increased by 81.6% year-over-year, with revenue hitting $6.81 billion. This beat analysts’ expectations by $140 million.
Looking forward, management now expects revenue and adjusted earnings per share for Q4 2024 to be in the ranges of $7.4 billion to $7.8 billion and $1.00 to $1.16, respectively. For reference, analysts were expecting $7.584 billion in revenue along with an adjusted EPS of $1.04. These results are considered in line with estimates, which likely triggered a “sell-the-news” event.
Investor Sentiment for MU Stock
The sentiment among TipRanks investors is currently very positive. Out of the 741,875 portfolios tracked by TipRanks, 1.8% hold MU stock. In addition, the average portfolio weighting allocated towards MU among those who do have a position is 5.76%. This suggests that investors of the company are confident about its future.
Furthermore, in the last 30 days, 12% of those holding the stock increased their positions. As a result, the stock’s sentiment is way above the sector average, as demonstrated in the following image:
Is MU a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MU stock based on 19 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 114% rally in its share price over the past year, the average MU price target of $156.37 per share implies 10.08% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
