Last week, you might have seen that Micron Technology, Inc. (NASDAQ:MU) released its third-quarter result to the market. The early response was not positive, with shares down 5.7% to US$132 in the past week. Results overall were respectable, with statutory earnings of US$0.30 per share roughly in line with what the analysts had forecast. Revenues of US$6.8b came in 2.0% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Micron Technology's 37 analysts is for revenues of US$37.7b in 2025. This would reflect a major 77% increase on its revenue over the past 12 months. Micron Technology is also expected to turn profitable, with statutory earnings of US$8.71 per share. In the lead-up to this report, the analysts had been modelling revenues of US$36.7b and earnings per share (EPS) of US$8.47 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
It will come as no surprise to learn that the analysts have increased their price target for Micron Technology 7.3% to US$158on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Micron Technology at US$225 per share, while the most bearish prices it at US$90.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Micron Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 58% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 18% per year. So it looks like Micron Technology is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Micron Technology's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Micron Technology. Long-term earnings power is much more important than next year's profits. We have forecasts for Micron Technology going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Micron Technology .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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