Micron (NASDAQ: MU) recently reported earnings for its fourth quarter of Fiscal Year 2022. Adjusted earnings per share came in at $1.45, which beat analysts’ consensus estimate of $1.37 per share. In the past nine quarters, the company has beaten estimates nine times.
However, Micron’s Q4 sales decreased 19.7% year-over-year, with revenue hitting $6.64 billion compared to $8.27 billion. This was lower than the $6.73 billion that analysts were looking for.
In addition, the company demonstrated operating deleverage since its non-GAAP gross margin fell to 40.3% compared to 47.9%. Also, its non-GAAP operating margin contracted from 37.1% to 25%. As a result, Micron’s adjusted operating income decreased from $3.07 billion in the comparable period to $1.66 billion now.
Investor Sentiment for MU Stock is Currently Negative
The sentiment among MU investors on TipRanks investors is currently Negative. Out of the 568,072 portfolios tracked by TipRanks, 2.6% hold MU stock. However, the average portfolio weighting allocated towards MU among those who do have a position is 5.39%. This suggests that investors of the company are fairly confident about its future.
Still, in the last 30 days, 1.0% of those holding the stock decreased their positions. As a result, the stock’s sentiment is below the sector average, as demonstrated in the following image:
Is Micron Stock a Buy, Sell, or Hold?
MU has a Moderate Buy consensus rating based on 19 Buys, five Holds, and two Sells assigned in the past three months. The average MU stock price target of $67.16 implies 34.3% upside potential.
Takeaway – Micron Had a Mixed Quarter
Micron had a mixed quarter, as revenue dropped significantly year-over-year while missing expectations, but earnings per share beat analyst estimates. Nonetheless, analysts are cautiously optimistic that the company will bounce back, given MU’s Moderate Buy rating.
