Wall Street expects Micron's quarterly revenue to be around 51 billions dollars.

Micron will release its earnings report after Wednesday’s market close, with Wall Street expecting quarterly revenue of around $51.0 billion. Revenue for the same period last year was $11.3 billion. Our analyst Melvin expects Micron to beat expectations again. His forecasts versus the consensus estimates are as follows: Revenue: $52.2 billion, compared to about $51.0 billion. Gross margin: 87.5%, compared to roughly 87%. Adjusted EPS: $33.00, compared to $31.50–$31.60. In June, management guided for revenue of $50.0 billion, gross margin of 86%, and EPS of $31.00, so market expectations have already surpassed the company’s own outlook. Melvin believes prices have remained strong enough that Micron could even exceed these revised forecasts, as DRAM supply continues to lag behind demand, and each new generation of AI systems drives larger memory needs.He is most closely watching long-term agreements. As of June, Micron had signed 16 strategic customer agreements. Fourteen of those cover minimum revenue of about $100 billion through 2030, with an estimated $22 billion in customer deposits and committed support; cumulatively, these agreements account for around 20% of DRAM sales volume and one third of NAND sales volume. He wants to see the updated number of agreements, and whether contract size and duration have increased as customers seek to secure supply. Multi-year take-or-pay contracts provide Micron with a level of demand visibility that the memory industry has historically lacked.In terms of HBM, Micron has already delivered over $1 billion worth of HBM4. Melvin is focusing on questions such as:Whether the company can maintain a roughly 20% share as it enters the HBM4E phase.How much of 2027 capacity has already been booked.Whether custom HBMs for specific accelerators can achieve better pricing.Compared with this quarter’s performance, he is more concerned with guidance. If next quarter’s guidance is close to $58.0 billion in revenue, around 88% gross margin, and EPS in the high $30 range, he will take this as a sign that strong pricing could persist through 2027.He also wants the company to clarify its cash usage plans, as Micron generated $17.6 billion in free cash flow last quarter but did not repurchase any shares.Melvin notes that after the recent rally, tomorrow’s price action is “basically a coin toss.” Micron could beat earnings yet sell off on weak guidance; or, results could merely meet expectations, but as long as management expresses optimism on pricing and 2027 demand, the stock price could rise.