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.
Momentum Indicator for MU turns positive, indicating new upward trend
MU saw its Momentum Indicator move above the 0 level on January 06, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 96 similar instances where the indicator turned positive. In of the 96 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for MU just turned positive on January 06, 2025. Looking at past instances where MU's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
MU moved below its 50-day moving average on January 08, 2025 date and that indicates a change from an upward trend to a downward trend.
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 .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 68, placing this stock slightly better than average.
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 (2.496) is normal, around the industry mean (12.255). P/E Ratio (30.040) is within average values for comparable stocks, (58.504). Projected Growth (PEG Ratio) (0.272) is also within normal values, averaging (3.233). Dividend Yield (0.004) settles around the average of (0.021) among similar stocks. P/S Ratio (4.049) is also within normal values, averaging (58.686).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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