Micron (MU, $49.86) disappoints with Q1 revenue and earnings
Micron Technology reported its fiscal first quarter revenue of US$4.09 billion, which is - 47% from the year-ago quarter. Revenue missed analysts' estimates by 1.4%. The semiconductor company mentioned weakening consumer demand and substantial customer inventory adjustments across end markets amid macroeconomic uncertainty as factors behind the disappointing quarterly performance.
Micron incurred a non-GAAP loss of -4 cents per share, wider than the Zacks Consensus Estimate of a loss of -2 cents. In the prior year, it had positive earnings of $2.16 per share.
Micron Technology, Inc. is one of the big three leaders in DRAM technology. The company's Dynamic random access memory revenues came in at $2.83 billion (accounting for 69% of the total revenues), down -49% year over year and -41% sequentially. NAND revenues of $1.10 billion (27% of the total) fell -41% year-over-year and -35% sequentially.
For the second fiscal quarter, Micron is expecting revenues of $3.80 billion (+/-$200 million), vs. Zacks Consensus Estimate of $3.77 billion (according to Zacks Equity Research).
It projects adjusted loss per share of 62 cents (+/-10 cents), vs. consensus of 30 cents per share (according to Zacks Equity Research).
MU sees its Stochastic Oscillator ascends from oversold territory
On December 04, 2024, the Stochastic Oscillator for MU moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 57 instances where the indicator left the oversold zone. In of the 57 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 09, 2024. You may want to consider a long position or call options on MU as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MU just turned positive on December 04, 2024. 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 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
MU moved below its 50-day moving average on November 26, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MU crossed bearishly below the 50-day moving average on November 21, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 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 69, placing this stock slightly better than average.
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 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.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (2.490) is normal, around the industry mean (9.168). P/E Ratio (144.100) is within average values for comparable stocks, (58.695). Projected Growth (PEG Ratio) (0.161) is also within normal values, averaging (3.095). Dividend Yield (0.005) settles around the average of (0.021) among similar stocks. P/S Ratio (4.490) is also within normal values, averaging (45.382).
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.
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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
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