Micron (MU, $43.67) climbs on fiscal Q2 beat and chip demand rebound forecast
Micron Technology beat fiscal second quarter earnings expectations, leading to a +6.9% jump in its stock price on Thursday.
The semiconductor company raked in adjusted non-GAAP earnings of $1.71 per share, surpassing analysts’ estimates by 4 cents (based on Refinitiv IBES data). Still, the earnings per share was -40% lower from the year-ago quarter.
Group revenues for the quarter declined -20.55% year-over-year to $5.84 billion, but managed to exceed analysts’ estimate of $5.82 billion.
The company generated $1 billion of free cash flow.
As part of its $10 billion stock buyback program, Micron repurchased 21 million shares of its common stock for $702 million during the quarter.
For the full-fiscal year 2019, Micron predicts that revenue would be in the range of $4.6 billion and $5 billion – which is lower compared to analysts’ expectations of $5.3 billion (according to IBES data from Refinitiv).
The company is planning to trim capital expenditures to $9 billion for the 2019 fiscal year, from its previous expectation of $9 billion-$9.5 billion range. Micron’s latest results and plans have come amidst a global shortage in demand for chips, owing to softening sales of smartphone and patchy frequency of purchases from cloud-computing businesses. Chief Executive Sanjay Mehrotra emphasized that Micron has been able to deliver profits despite the rocky situation facing the semiconductor industry. Also, Micron seems hopeful that demand would begin to pick up by its fourth quarter.
MU's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for MU turned positive on June 03, 2025. Looking at past instances where MU's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 02, 2025. You may want to consider a long position or call options on MU as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for MU moved above the 200-day moving average on June 27, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 218 cases where MU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 17 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 17 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MU broke above its upper Bollinger Band on June 03, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.751) is normal, around the industry mean (9.277). P/E Ratio (22.479) is within average values for comparable stocks, (63.173). MU's Projected Growth (PEG Ratio) (0.157) is slightly lower than the industry average of (2.334). Dividend Yield (0.004) settles around the average of (0.019) among similar stocks. P/S Ratio (4.177) is also within normal values, averaging (33.954).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a manufacturer of advanced semiconductor solutions such as DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components and memory modules
Industry Semiconductors
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