What To Expect From Micron Technology, Inc. (MU)?
Memory-chip maker Micron Technology, Inc. (NASDAQ:MU) is scheduled to report its 1Q2015 earnings after the closing bell today. The question now is whether the company would make investors happy by posting better performance than in the previous year. Also, the market will be waiting to see what the company says about the upcoming quarters.
According to analyst consensus estimates, investors should expect Micron Technology, Inc. (NASDAQ:MU) to post better earnings and revenue in today’s report than it did in the like quarter last year. The memory company is anticipated to report earnings of $0.92 per share and revenue of $4.62 billion in today’s report. If the estimates are met, the company would have outperformed its 1Q2014 during which it earned $0.77 per share and revenue of $4.04 billion.
Acquisition of Elpida
In 2014, Micron Technology had a generally outstanding year as both revenue and earnings improved from the previous year. For this year, analysts expect the company to continue its growth trend, especially helped by the acquisition of Elpida Memory.
The acquisition of Elpida not only helped the company to expand its memory market share, but also brought on board a significant customer in the form of Apple Inc. (NASDAQ:AAPL). Therefore, the acquisition has the potential to drive big revenue growth at Micron Technology, Inc. (NASDAQ:MU).
As Micron Technology, Inc. (NASDAQ:MU) reports 1Q, guidance will be closely tracked because, and a better than expected outlook could support shares to breach key price barriers. Analysts at Nomura raised their target price on the stock to $45 from $40 and maintained a “Buy” rating on it. Piper Jaffray also increased its target price on Micron to $44 from $43 and set a “Buy” rating on it.