Why Micron Technology Stock Rose in September

Micron stock rose on fiscal 4Q17 earnings

Semiconductor (SMH) heavyweight Micron Technology (MU) stock rose almost 25.0% in September 2017 to close the month at $39.33. It’s trading 143.0% above its 52-week low of $16.14 and 3.0% below its 52-week high of $40.37. Micron announced its fiscal 4Q17 results on September 27, 2017, and the stock rose 8.5% that same day.

Micron reported revenue of $6.1 billion in fiscal 4Q17, a significant rise of 91.0% YoY (year-over-year) compared to $3.2 billion in fiscal 4Q16. EPS (earnings per share) was $2.02. Analysts expected Micron to post revenue of $6.0 billion with EPS of $1.84 in fiscal 4Q17. The company beat analysts’ revenue estimate by 3.0% and the earnings estimate by 9.8% in fiscal 4Q17.

Why Micron Technology Stock Rose in September

Upbeat outlook for fiscal 1Q18

Micron expects revenue between $6.1 billion and $6.5 billion in fiscal 1Q18, which is above analysts’ estimate of $6.1 billion. Micron management expects EPS between $2.09 and $2.23, which is higher than analysts’ estimate of $1.85. Micron stated that the ASP (average selling price) of DRAM (dynamic random access memory) chips rose 8.0% in fiscal 4Q17. It has estimated the supply shortfall in DRAM and NAND (NOT AND) markets to continue until the end of 2017.

Of the 31 analysts covering Micron stock, 29 recommend a “buy,” and two recommend a “hold.” The average 12-month price target for Micron is $49 with a median target of $48.50. Micron is trading at a discount of 22.8% to median target estimates.