|Day's Range||20.40 - 20.45|
Micron Technology Inc. shares rise in the extended session Tuesday after the memory-chip maker’s results top lowered expectations for the quarter and executives forecast improvement in the fourth quarter even though actual numbers were shy of Wall Street expectations.
(Bloomberg) -- Micron Technology Inc., the largest U.S. maker of computer memory chips, projected sales in the current quarter in line with analysts’ estimates and said it had resumed shipments of some products to China’s Huawei Technologies Co. Shares gained about 10% in extended trading.Revenue will be $4.5 billion, plus or minus $200 million, in the period ending in August, Chief Financial Officer David Zinsner said on a conference call. Analysts, on average, projected $4.56 billion.Earlier, the Boise, Idaho-based chipmaker reported sales fell 39% to $4.79 billion in the fiscal third quarter, compared with analysts’ estimates of $4.68 billion.“While we are seeing early signs of demand improvement, we plan to reduce our capital expenditures in fiscal 2020 to help improve industry supply-demand balance,” Chief Executive Officer Sanjay Mehrotra said in a statement.Key InsightsMicron makes chips used as the main memory in computers and as storage in mobile devices.Huawei has been a major customer of Micron accounting for more than 10% of its revenue. Business with that company, which the U.S. has listed as a threat to national security, had stopped completely, Mehrotra said. But the company reviewed the government’s rules and resumed shipments of some products, although uncertainty remains, he said on the conference call.Mehrotra has been telling investors that a much broader set of customers will help insulate the industry from the brutal downturns that have wiped out profitability in the past. Now he’s facing growing concern that the trade war with China will cut off his company from the world’s largest market for semiconductors.Earnings, excluding certain items, were $1.05 a share in the period ended May 30. Analysts, on average, projected profit of 78 cents a share on sales of $4.68 billion, according to data compiled by Bloomberg.Market ReactionMicron’s stock rose as much as 11% in extended trading following the announcement. It closed earlier at $32.68 in New York.Shares have gained 3% this year, trailing the performance of other chip stocks.Know MoreMany analysts have expressed concern that the China trade dispute is worsening an industry downturn and threatens Micron’s ability to generate cash. The company projected adjusted profit of 45 cents a share, plus or minus 7 cents, in the current quarter. Analysts estimated 63 cents a share.Last quarter, the company said it would idle 5% of production for DRAM and NAND memory chips because of weaker demand and reduce its planned capital expenses in the fiscal year to about $9 billion.Micron said Tuesday it intends to “meaningfully” reduce its spending on new plants and equipment in its fiscal year 2020, in order to align increases in supply with demand levels.For more details, click here.To see the statement, click here.(Updates with sales forecast in the second paragraph.)To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew Pollack, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Memory-chip maker Micron Technology late Tuesday trounced Wall Street's earnings target for its fiscal third quarter. The Micron earnings news drove its stock higher in extended trading.
Shares of Micron Technology were up almost 8% Tuesday after-hours after the chipmaker reported quarterly results that topped analyst expectations Micron reported fiscal third quarter revenue of $4.79 billion, down from the $7.
When DRAM and NAND markets have high demand and tight supply, earnings and revenue rip higher. For instance, three years ago, Micron stock was trading for less than $12 per share. While Micron stock is actually up about 6% so far in 2019, it's down more than 40% over the past 12 months.
Stocks in chipmakers have fallen in the past few months as demand for Apple's iPhones declined and prices for DRAM and NAND memory chips sank due to an oversupply, adding to concerns that a two-year-long semiconductor upswing was coming to a halt. "While we are seeing early signs of demand improvement, we plan to reduce our capital expenditures in fiscal 2020 to help improve industry supply-demand balance," Chief Executive Officer Sanjay Mehrotra said.
BOISE, Idaho, June 25, 2019 -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2019, which ended May 30, 2019. Fiscal Q3 2019.
What's the most important thing investors should listen to during Micron earnings call Tuesday? Action Alerts PLUS senior analyst Jeff Marks has the answer.
down to its "reversion to the mean," which is the stock's 200-week simple moving average at $30.78. In addition, Micron's weekly slow stochastic reading shown on its weekly chart is declining toward 10.00.
Micron (MU) reports fiscal third-quarter results after close today, and investors are bracing for more bad news.The company — which saw its stock skyrocket more than 30% between January and May — is really feeling the effects of the US-China trade tensions. Since May, shares are down 23% as the two countries continue to battle, and its shares are now about even for the year. This evening, when Micron releases earnings, investors are expecting the bad news to continue, as pricing and demand continue to be a challenge for the chip giant.But analyst Eric Ross of Cascend Securities is looking at the stock as a “a longer-term value play,” as he maintains his Buy rating. (To watch Ross' track record, click here)Though Ross likes Micron “as a company,” he believes “the stock recovered a bit too early in this cycle.” While many thought that the trade war was over, investors are worrying that the renewed tension will “be long and drawn-out, and the stock has pulled back” on the concern. But because of this, Ross says he finally sees the stock as pulled back again to an attractive level, justifying an investment.The industry is facing major challenges, as lower selling prices have been caused by high inventory and it will take time for things to normalize. Further, tensions between the US and China continue to play a negative role in sentiment. Micron generates more than half of revenue from China — $17 billion out of a total $30 billion in 2018 — which continues to be at risk as the two countries battle. If Chinese tariffs were to directly impact Micron, revenue and sales would decrease even more than what is currently expected.But even as Ross is a buyer of MU, he cautions investors — you put money into the stock only “if you are willing to wait a year to see significant returns." Because of uncertainty and geopolitical tension, the analyst says “EPS guidance is likely to come down further,” but does not expect it to “come down enough to make MU not look like a good value.”All in all, Micron is getting hit from multiple angles right now and cannot control the geopolitical struggle impacting its business. While the industry will soon normalize, the company is still facing a threat with the US and China trade war. That said, TipRanks’ analysis of 20 analyst ratings shows confidence, with 11 analysts recommend Buy, five say Hold and four suggest Sell. The average price target among these analysts stands at $42.35, which implies a 25% upside from where the stock is currently trading. Read more on MU: * Deutsche Bank Believes in Micron Long-Term Even as Trade War Rages * This Analyst Sees Micron (MU) Stock Falling a Bit Further; Here’s Why * Needham Remains Sidelined on Micron (MU) Stock; Here’s Why * Micron’s Tech Roadmap Highlights Flattening Cost Curve, Says Analyst More recent articles from Smarter Analyst: * Apple & Google’s Vision of the Future Contrasted by Developer Resources * Last Minute Thought: Buy or Sell Micron (MU) Stock Before Q3’19 Earnings? * Canopy Growth (CGC): Recent Licence from Health Canada Ain't Going to Help the Stock * Top Cannabis Stocks Under Fire: What's The Stock Market's Message?
The stock market was modestly lower early Tuesday ahead of Fed Chair Powell's comments. Homebuilder Lennar is nearing a breakout.
For that reason, soft results and guidance might not by themselves be enough to drive Micron's shares lower when the reports earnings after the close on Tuesday. Rather, what might matter is just how bad Micron's near-term results and guidance are, and how quickly the company expects conditions to improve. On average, analysts polled by FactSet expect Micron to report May quarter (fiscal third quarter) revenue of $4.69 billion (down 40% annually) and non-GAAP EPS of $0.79 (down 75%).
Micron Technology (MU) was the best-performing stock of 2017, growing more than 80%. During its last quarterly earnings results on March 20, 2019, Micron stock rose ahead of its earnings and jumped 9.6% one day after its earnings release as it beat analysts’ EPS estimate even though it missed their revenue estimate.
The US-China trade war has heated up and both the countries seem willing to fight until the end. The trade war is changing the global semiconductor supply chain, as the United States is the biggest exporter and China is the biggest importer of semiconductor chips. The rising trade tensions between the two encouraged many chip companies to shift their production outside China.
U.S. stock futures declined on Tuesday as investors were taking a defensive stance on risk ahead of this weekend's G-20 summit in Japan. With Donald Trump announcing a new set of sanctions on Iran, and U.S. officials downplaying expectations for a breakthrough in talks with Beijing from the upcoming G-20 meeting with China's Xi Jinping, investors appeared unwilling to reach for risk in the absence of headline drivers on trade or central bank support. Powell will be interviewed by New York Times senior economics correspondent Neil Irwin at the Council on Foreign Relations in New York at 1 p.m. ET.
Micron Technology (NASDAQ: MU ) announces its next round of earnings this Tuesday, June 25. Here's Benzinga's look at Micron Technology's Q3 earnings report. Earnings and Revenue Based on management's ...
has a five-year track record of solid revenue growth, improved margins, and strong profitability. More recently, though, the stock is getting pulled into the ongoing trade war between the United States and China. Earnings per share increased 51% in fiscal 2018 (May) to $16.79 per diluted share.
Micron Technology (MU) is a cyclical stock governed by memory prices, which are driven by demand and supply forces. If we look at Micron stock’s valuation, it looks like a cheap stock with strong growth potential. However, the cyclical nature of the stock makes valuing it difficult.
Micron Technology Inc. seems poised to report a “fugly” quarter on Tuesday and may lose money by the end of the year, according to Citi, but its stock could be nearing a bottom.
Investing.com - The market’s focus on interest rates is likely to continue tomorrow with Federal Reserve Chairman Jerome Powell making a public appearance so soon after his post-FOMC press conference.