Micron Technology, Inc (NASDAQ: MU) reports May quarter earnings on June 30, after market close.
Rosenblatt analyst Hans Mosesmann expects sales and non-GAAP EPS to be in-line with his sales and EPS estimates of $8.70 billion and $2.46, slightly above the consensus of $8.65 billion and $2.46, respectively.
He sees the May quarter led by data center, auto, and industrial strength offset by the mixed or weaker consumer, low-end PC, and mobile handsets.
Across the board, including in data center, mobile, PC, and auto, and better than expected bit shipment and pricing trends for DRAM and NAND.
For the August quarter guide, he noticed some risk to his aggressive over 10% q/q sales growth assumption on mixed PC datapoints.
However, he is comfortable in the company exceeding consensus mid-single-digit sales growth on data center product/content ramps as non-memory component shortages become less of a nasty headwind.
He views DRAM bit demand growth for 2022 (and 2023, for that matter), exceeding ample supply of 16%-18%, as infrastructure-related end markets offsetting potential unit inflation-driven headwinds in consumer, PCs, and mobile.
He expects management to reiterate a go-forward memory/storage market as memory, in particular, becomes a gating factor in compute performance enabling the company to see OM levels of 30% plus, FCF >10%, and EBITDA margins in the low-50% level.
He rated the stock as a Buy with a price target of $165.
Price Action: MU shares traded lower by 3.51% at $55.83 on the last check Wednesday.
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