Micron’s Q2 Earnings Could Cause Major Price Movement


Nov. 20 2020, Updated 1:23 p.m. ET

Micron’s stock could see strong momentum on March 21 

This week, semiconductor investors should watch out for pure-play memory chipmaker Micron Technology’s (MU) fiscal 2019 second-quarter earnings set to release on March 20 after the market close. Micron’s stock has been very volatile ahead of its earnings. It fell 9% in the first week of March on a DRAMeXchange report of a 30% decline in the first-quarter PC DRAM (dynamic random access memory) contract price. The stock rose 5% in the second week of March thanks to Broadcom’s (AVGO) strong guidance for fiscal 2019.

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Micron’s stock could see high-single-digit movement on March 21, but the direction of the movement will depend more on the guidance than the earnings. In the last earnings release, the stock fell ~8% on weak guidance for the second quarter of fiscal 2019. Let’s see what investors can expect from Micron’s upcoming earnings.

Micron’s fiscal 2019 second-quarter revenue estimate

For the second quarter of fiscal 2019, Micron expects its revenue to be in the range of $5.7 billion to $6.3 billion, representing a sequential decline of 24% and a YoY decline of 18% at the midpoint. The YoY decline shows that the decline is not seasonal but cyclical. However, DRAMeXchange’s report that the first-quarter PC DRAM contract price fell 30% instead of the estimated 25% made analysts bearish on Micron. Analysts expect Micron’s revenue to fall 20% YoY and 26% sequentially to $5.86 billion during the quarter.

Micron beat revenue estimates in all four quarters of fiscal 2018. However, it broke this trend last quarter and missed the fiscal 2019 first-quarter revenue estimate by 1.3%. We expect this trend to continue in the second quarter and Micron to miss estimates by 1.5% and report revenue of $5.76 billion.

Next, we will see what factors will influence Micron’s revenue in the second quarter of fiscal 2019.

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!


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