Micron Technology reported adjusted earnings of $1.45 a share, higher than analysts’ expectations of $1.37 a share. The result also revealed a substantial decrease from the year-ago quarter’s $2.42 a share (as reported in MarketWatch)
Revenue fell to $6.64 billion from $8.27 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast revenue of $6.73 billion. (as reported in MarketWatch)
In July, Micron cautioned of possible oversupply in the chip market following COVID-19 pandemic-driven shortages. “Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023,” said Sanjay Mehrotra, Micron’s chief executive, in a statement issued in July. “We are confident about the long-term secular demand for memory and storage and are well positioned to deliver strong cross-cycle financial performance.”
In the latest statement, Mark Murphy, Micron’s chief financial officer, said, “Inventory levels are high and they’re going to be higher.” (as reported in MarketWatch). “They’ll be over 150 days, we believe. And again, it’s a function of this unprecedented period, and we’re doing what we can to affect future supply or future capacity, be in a position to work those inventories down.”
Mehrotra said that Micron intends to lower capital spending in fiscal 2023 by about $8 billion, or by more that 30%, with a 50% cut in spending on wafer-fab equipment.
Looking ahead, the chipmaker is expecting adjusted loss of 6 cents and net income of 14 cents a share on revenue of $4 billion to $4.5 billion for the fiscal first quarter. Analysts expected 69 cents a share on revenue of $5.71 billion.
MU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 35 cases where MU's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on November 06, 2024. You may want to consider a long position or call options on MU as a result. In of 97 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 November 07, 2024. 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 .
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 Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
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 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 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 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 (2.749) is normal, around the industry mean (8.289). P/E Ratio (159.857) is within average values for comparable stocks, (58.164). Projected Growth (PEG Ratio) (0.179) is also within normal values, averaging (3.159). MU has a moderately low Dividend Yield (0.004) as compared to the industry average of (0.021). P/S Ratio (4.983) is also within normal values, averaging (47.742).
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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of advanced semiconductor solutions such as DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components and memory modules
Industry Semiconductors