Shares of chip maker Micron Technology, Inc. (MU) soared more than 8 percent higher Friday, one day after the company reported a big second-quarter earnings beat.
Micron reported earnings per share of 90 cents on revenue of $4.64 billion. According to Estimize, Wall Street analysts were expecting EPS of 83 cents on revenue of $4.64 billion. Micron’s second-quarter revenue was up an impressive 58 percent compared to the same quarter a year ago and up 17 percent compared to the first quarter.
The company also reported a 38.5 percent gross profit margin for the quarter, more than double the margins it reported a year ago. The chip giant’s guidance was equally impressive, easily beating consensus forecasts.
The strong earnings report and Wall Street’s positive reaction pushed MU stock close to its 52-week high of $29.87.
Not surprisingly, several analysts have reacted positively to Micron’s quarter. Deutsche Bank analyst Sidney Ho reiterated the firm’s “buy” rating on MU stock and raised its price target from $30 to $35.
“We are particularly impressed with the company’s ability to execute on its technology roadmap for both DRAM and NAND, driving solid growth and cost improvements,” Ho wrote in a new research note.
UBS analyst Stephen Chin also reiterated his firm’s “buy” rating and upped his price target from $30 to $32 for Micron stock.
Despite the huge quarter, there are still some Micron skeptics on Wall Street. Pacific Crest analyst Weston Twigg says Micron’s guidance is “extraordinarily strong,” but he is concerned with the possibility of volatility in memory pricing in the second half of the year. Twigg says…
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