Despite posting better-than-expected results for the fourth quarter of Fiscal Year 2021, shares of memory and storage solutions provider Micron Technology (MU) declined 3.6% in extended trade on Tuesday.

Revenue jumped 36.5% year-over-year to $8.27 billion and surpassed the Street’s expectations of $8.21 billion. Its adjusted earnings of $2.42 per share came ahead of analysts' expectations of $2.32. The figure compares favorably with earnings of $1.08 per share reported in the year-ago quarter.

The President and CEO of Micron, Sanjay Mehrotra, said, “In fiscal 2021, we established DRAM and NAND technology leadership, drove record revenues across multiple markets, and initiated a quarterly dividend. The demand outlook for 2022 is strong, and Micron is delivering innovative solutions to our customers, fueling our long-term growth.”

For the first quarter of Fiscal Year 2022, Micron expects to deliver revenue of $7.65 billion (± $200 million). Also, adjusted earnings are anticipated to be in the range of $1.90 to $2.10. (See Micron stock chart on TipRanks)

Following the release, Mizuho Securities analyst Vijay Rakesh maintained a Buy rating on Micron and lowered the price target to $90 from $97. The new price target implies upside potential of 23.1% from current level.

Rakesh said, “Despite the near-term outlook for potentially declining memory prices, we believe MU can trade at the higher end of its past trading ranges as industry consolidation and more stable supply have combined with strong long-term demand trends.”

Based on 16 Buys and 5 Holds, the stock has a Strong Buy consensus rating. The average Micron price target of $107.67 implies 47.3% upside potential from current levels.

MU scores an 8 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.

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The post Micron Shares Fall 3.7% Despite Upbeat Q4 Result appeared first on TipRanks Financial Blog.

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By: Radhika Saraogi
Title: Micron Shares Fall 3.7% Despite Upbeat Q4 Result
Sourced From: blog.tipranks.com/micron-shares-fall-3-7-despite-upbeat-q4-result/
Published Date: Wed, 29 Sep 2021 10:23:48 +0000

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