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.
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.
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