Credit Suisse Sees Modest Q2 Results for Micron (MU)

Credit Suisse is maintaining its Outperform rating on shares of Micron Technology (NYSE: MU) as the company is expected to release its second-quarter results later Wednesday after the close, which will be followed by a conference call at 4:30 pm.

The firm believes that Micron will post a revenue figure ahead of its estimate, but anticipates EPS results will be roughly in line with its forecast.

Credit Suisse comments that the timing of capex should drive down the company's cash flows to negative $574 million and that the recent run-up in the stock reflects a hard bottom in DRAM pricing in February. The firm expects to see further appreciation as investors better understand the more diversified revenue stream.

The next catalyst for the stock that the firm sees is a mix up within commodity DRAM from PC to Servers, which it anticipates will occur in the May/June timeframe.

Credit Suisse's current second-quarter revenue estimate is $2.09 billion, while its EPS is ($0.04). The firm is lowering its 2012 EPS estimate by $0.01 to $0.80.

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