Micron Technologies Inc is scheduled to report earnings after Wednesday’s close. The stock hit a record high of $157.54/share in 2024 and is currently trading near $95. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $1.15/share on $7.65 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.21/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings have been up and down over the last few years. In 2020, the company earned $2.83/share. In 2021, earnings jumped to $6.06. Then, in 2022 earnings grew to $8.34. In 2023, the company lost $4.45. This year, earnings are expected to grow to $1.21 and then grow to $8.81 in 2025! That growth is largely due to very strong A.I. demand and other things.
A Closer Look At The Technicals
Technically, the stock is not acting well. The stock is in a steep downtrend, it is trading below its 50 day moving average line and it is 39% below its 52-week high. Technically, strong stocks are going up, not down, and making new highs. The bulls want to see if the stock can gap up after reporting earnings and start a new uptrend and the bears want to see it gap down and keep falling.
Company Profile
Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. Memory is essential and a big part of artificial intelligence (AI).
The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels.
The company offers memory products for the cloud server, enterprise, client, graphics, networking, industrial, and automotive markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets.
It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com.