Micron Technology Placed on Citi Negative Catalyst Watch
A Citi analyst on Monday opened a negative catalyst watch on shares of Micron Technology (MU) - Get Report, a day before the semiconductor company is scheduled to report fourth-quarter earnings.
Shares of the Boise, Idaho, company at last check were up 0.4% at $49.31.
Analyst Christopher Danely, who has a sell rating on the shares with a $35 price target, said he expected Micron to report sales below guidance of $6 billion but in line with his $5.5 billion estimate due to what he called a double dip in DRAM.
The analyst also expects the stock to trade lower on the report and would be more constructive on the stock in the mid $30s, according to The Fly.
Last week, TheStreet.com Founder Jim Cramer said on CNBC that “Micron’s core DRAM business could be saved by their disk drive business, but I don’t see the stock roaring unless management says they see tightness coming in DRAMs.”
“At these levels, I’d be willing to bet they do just that,” he said.
In June, Micron said it expected fiscal fourth-quarter earnings of 78 cents to 98 cents a share, or an adjusted 95 cents to $1.15 a share. Revenue should come in at $5.75 billion to $6.25 billion.
Analysts surveyed by FactSet were expecting the company to earn 71 cents a share, or an adjusted 79 cents, on revenue of $5.46 billion.
The company reported fiscal-third-quarter earnings of 71 cents a share, or an adjusted 82 cents, compared with 74 cents in the year-earlier quarter. Revenue climbed 14% to $5.44 billion from $4.79 billion.
FactSet had called for net income of 64 cents a share, or an adjusted 75 cents, on revenue of $5.27 billion.
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