FINWIRES · TerminalLIVE
FINWIRES

Micron Poised to Top Third-Quarter Estimates as Memory Prices Jump, Wedbush Says

By
Micron Poised to Top Third-Quarter Estimates as Memory Prices Jump, Wedbush Says

Micron Technology (MU) may deliver fiscal third-quarter results well above Wall Street's expectations after market prices for memory chips came in higher than the company had assumed, Wedbush Securities said.

The semiconductor manufacturer reports results on Wednesday. Wedbush raised its estimates after prices for both NAND flash, the storage memory used in solid-state drives, and DRAM, the main working memory in servers and PCs, rose by high double- to triple-digit percentages in the second quarter.

Wedbush expects third-quarter earnings of $22.84 a share, up from its prior $19.16 forecast and above the $20.09 market consensus. Its revenue forecast increased to $38.5 billion from $33.51 billion, also ahead of the $34.84 billion consensus.

Micron is likely to benefit from a stronger-than-industry step-up in average selling prices, Wedbush said Thursday in a report. Even with its updated estimates at the high end of consensus, the firm sees room for Micron to exceed its model, with DRAM pricing the most influential driver of income and earnings.

Fourth-quarter estimates were also raised, and Wedbush said those projections may still prove conservative.

Industry checks point to a roughly 20% increase in memory-chip pricing in the third quarter, the report said. Wedbush also noted a recent surge in secondary-market pricing for registered dual in-line memory modules, which could continue through the September quarter and signal further upside for forward contract prices.

Wedbush lifted its price target on Micron stock to $1,300 from $550 and reiterated its outperform rating.

Micron shares rose 7.9% in Thursday trading. They have almost quadrupled this year.

Demand tied to AI is expected to remain strong through 2027, oversupply risks appear limited over the next 18 months, and Micron has a strong chance of topping estimates, Wedbush said.

Price: $1125.20, Change: $+82.01, Percent Change: +7.86%

Related Articles

Manufacturing Strength Drives New Zealand's Economy to Third Consecutive Quarter of Expansion
US Markets

Manufacturing Strength Drives New Zealand's Economy to Third Consecutive Quarter of Expansion

New Zealand's economy continued to expand in the March quarter as growth in the manufacturing and business services sectors helped offset weakness in mining and construction.The country's gross domestic product increased 0.8% in the first quarter, accelerating from 0.5% growth in the previous three-month period and marking the third consecutive quarter of expansion, according to a report by the official statistics agency, StatsNZ, filed on Thursday.The growth is slightly ahead of the 0.7% expansion forecast by BofA Securities, but short of the 1% rise expected by ANZ.Nine out of the 16 industries in New Zealand posted an increase in activity in the first quarter, with a 1.9% jump in manufacturing representing the largest upward contribution to overall GDP growth. The business services sector grew 1.1%, and wholesale trade advanced 2.4%.On the flip side, mining was the biggest downward contributor to GDP as activity slumped 11.6% due mainly to a fall in oil and gas extraction. The construction sector declined 1% as spending on both residential and non-residential building slid by more than 3%.Earlier in June, the government agency said the Middle East conflict and the resulting increase in fuel prices will influence various segments of the economy, but the full impact is likely to be evident in second-quarter GDP data due for release in September.Westpac said that while the 0.8% first-quarter growth is slightly lower than the bank's forecast, the net impact of certain revisions, including the upward revision of December 2025 quarter growth to 0.5% from 0.2%, "make this a stronger overall result than we were expecting."ANZ echoed that sentiment, saying the result marks "a good start to the year." The data is unlikely to alter the Reserve Bank of New Zealand's thinking, ANZ said, adding that it still expects the central bank to raise its official rate by 25 basis points in July.

^NZ50
Dow Retreats From Highs in Broad Sell-Off Following Fed Decision
US Markets

Dow Retreats From Highs in Broad Sell-Off Following Fed Decision

The Dow Jones Industrial Average fell from record highs Wednesday as markets reacted to the Federal Reserve's first policy decision under Kevin Warsh's leadership.The Dow shed 1% to 51,492.6 after notching back-to-back closing highs. The Nasdaq Composite dropped 1.3% to 26,021.7, while the S&P 500 fell 1.2% to 7,420.1. All sectors ended in the red, led by communication services.The Fed kept its monetary policy steady Wednesday to mark its fourth consecutive pause, removing the so-called easing bias from its statement. Fed policymakers raised its interest rate expectations through 2028 and their inflation projections for 2026 and 2027.It was Warsh's first policy meeting as Fed chair, replacing Jerome Powell, who remains a Fed governor.Warsh said at a post-meeting press conference that he didn't submit his rate forecast in the dot plot, which anonymously shows individual members' expectations regarding monetary policy, CNBC reported."The FOMC stuck a more hawkish tone under (Warsh's) debut appearance as the new Fed chair," Thomas Feltmate, senior economist at TD Economics, said in a report.US Treasury yields jumped in late-afternoon trade, with the two-year rate last seen up about 16 basis points at 4.23% and the 10-year rate rising five basis points to 4.5%."The Fed's latest message was dramatically reduced from prior releases, perhaps a precursor (to) a new Warsh era of decisively more succinct language and more limited communication from Fed officials," Stifel Chief Economist Lindsey Piegza said in a report e-mailed to.West Texas Intermediate crude oil was up 0.1% at $76.14 a barrel in Wednesday late-afternoon trade, while Brent was little changed at $78.98.A draft agreement between the US and Iran includes a mechanism for Tehran to gain access to at least $300 billion in financing, as well as a commitment from the Islamic Republic that it will never produce nuclear weapons.A formal signing ceremony is scheduled to take place in Switzerland Friday, which would kick off a 60-day period of further talks.US President Donald Trump said Wednesday that the proposed memorandum of understanding with Iran is "not final" and that Washington would resume military operations if he doesn't like the Tehran deal, CNBC reported.The International Energy Agency lowered its global oil demand forecast for 2026 amid war-driven headwinds while projecting a rebound next year."While the US-Iran interim agreement paves the way for a rebound in Middle East (oil) exports, operational and political constraints, including prolonged demining and unresolved transit arrangements, leave downside risks to the outlook," the agency said.In economic news, US retail sales rose more than expected in May as consumers kept spending despite higher prices, official data showed.In company news, CarMax's (KMX) fiscal first-quarter earnings fell year over year as comparable used vehicle sales swung negative. The used-vehicle retailer's shares slid 9%.Carvana (CVNA) shares sank 10%, the steepest decline on the S&P 500.Gold was down 2.2% at $4,258.60 per troy ounce, while silver slumped 4.1% to $67.17 per ounce.

Dow JonesNasdaq CompositeS&P 500$CVNA$KMX
Manufacturing, Services Sectors Poised for Continued Expansion in 2026, ISM Says
US Markets

Manufacturing, Services Sectors Poised for Continued Expansion in 2026, ISM Says

The US manufacturing and services sectors are set for continued expansion this year despite macro and other headwinds, while raw material prices and employment are seen increasing, the Institute for Supply Management said Wednesday.Manufacturing revenue is expected to increase by an average of 8.4% in 2026, four percentage points higher than the December forecast and 5.9 percentage points higher than last year's rate, according to the ISM's latest supply chain planning forecast.Services revenue is expected to rise by 8.6% this year, four percentage points higher than the rate projected in December and 4.4 percentage points higher than the increase reported for 2025."Expectations for the remainder of 2026 are higher than those expressed in December," the ISM said. "The US economy continues to successfully battle the headwinds posed by trade issues, continued inflation concerns, and geopolitical uncertainty."In the manufacturing sector, raw material prices are expected to increase a total of 14.1% for the year, indicating a rise of 2.2 percentage points for the rest of 2026. Employment in the sector is seen growing 1.4%.In services, raw material prices are expected to increase 8.9% for 2026, indicating expectations of "continuing inflation," the ISM said. The sector's employment is likely to increase 0.9 percentage point this year.Capital expenditures in the manufacturing sector are now projected to rise 4.9% this year, 1.9 percentage points higher than the December forecast, while services capex is seen growing 6.4%, compared with 2025, according to the report.Earlier this month, an ISM survey showed that the US manufacturing sector expanded to its highest level in four years in May amid strength in demand and production, though price pressures remained elevated. A separate survey showed that the services sector grew at a faster rate sequentially last month.