Micron Technology, Inc.
Micron posted a beat and raise quarter, generating $5.57 billion in revenue, up 20% Q/Q, and above consensus’ estimate of $5.4 billion in F3Q17. Pro forma EPS of $1.62 was above consensus’ estimate of $1.52. Looking forward, F4Q17 revenue was guided to a range of $5.7 billion to $6.1 billion with mid-point of $5.9 billion above the Street estimate of $5.62 billion. Pro forma EPS was guided to a range of $1.73 to $1.87 with midpoint of $1.80 also above the Street estimate of $1.58.
Loop Capital Markets analyst Betsy Van Hees commented, “We believe yet another beat and raise by Micron Technology supports our view that “the sun, the moon, and the stars” continue to remain aligned as MU benefits from the elongated trifecta of the memory cycle – tight supply/demand dynamics, increasing prices, and cost reductions. We expect these favorable dynamics to continue to drive operating leverage in the model with sustained healthy earnings and revenue growth through the second half of calendar year 2017 and into fiscal year 2018. With no negative catalysts on the horizon to change the favorable memory supply/demand dynamics, we continue to recommend investors with a higher risk/reward tolerance take advantage of the recent pullback and buy the stock.”
As such, Van Hees reiterates a Buy rating on Micron shares, with a price target of $40, which implies an upside of 27% from current levels.
According to TipRanks.com, Van Hees is a 5-star analyst, holding a yearly average return of 21.9% and a 65% success rate. The analyst has a 53.4% average return when recommending MU, and is ranked #141 out of 4600 analysts.
Out of the 27 analysts polled by TipRanks (in the past 12 months), 23 rate Micron stock a Buy, 3 rate the stock a Hold and 1 recommends to Sell. With a return potential of 20%, the stock’s consensus target price stands at $37.80.
Nike shares are up nearly 6% in pre-market trading Friday, after the athletic apparel giant reported fiscal fourth-quarter results, posting better than expected earnings per shares of $0.60, beating consensus estimates of $0.50 a share by 20%. In addition, as has been speculated in the news in recent days, Nike confirmed the reported Amazon pilot, but noted it would be small to start with a focus on product elevation and improved story telling.
Susquehanna analyst Sam Poser opined, “Nike’s 4Q17 print was concrete evidence that NKE has turned the corner. The company delivered a solid EPS beat, provided better-than-feared FY18 guidance, and set the stage for a return to mid-teens EPS growth in FY19 […] In many ways, improving results are a function of the way Nike is melding performance and style to introduce relevant innovation into the marketplace. We are certainly beginning to see the fruits of Nike’s efforts to re-ignite its innovation engine with initial success of new platforms such as VaporMax and Zoom X, DD growth in Sportswear, and a return to growth in Basketball.”
With respect to the Amazon partnership, Poser said, “Big potential, but don’t get too excited just yet […] Given Amazon’s reputation as a transactional retailer with no interest in brand building, we have doubts as to whether Amazon will ever agree to the removal of unauthorized 3rd party Nike sales from the site. Hence, we would be surprised if the pilot was meaningfully expanded.” However, “If we are wrong and the Amazon deal develops into a larger partnership, there is certainly a significant sales opportunity.”
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks.com, Poser has a yearly average return of 7.5% and a 55% success rate. Poser has a -3.9% average return when recommending NKE, and is ranked #534 out of 4600 analysts.
Out of the 32 analysts polled by TipRanks (in the past 12 months), 17 are bullish on Nike shares, 13 are sidelined, and 2 remain bearish. With a return potential of 13%, the stock’s consensus target price stands at $60.