Micron reported earnings that surpassed estimates. While the semiconductor company issued a slightly lower-than-expected guidance for its current quarter, the latter represents a cyclical bottom according to the company.
For the first quarter of fiscal year 2020, Micron’s adjusted earnings came in at 48 cents per share, beating the Street expectations of 47 cents.
Revenue was $5.144 billion, exceeding analyst expectations of $4.99 billion.
Adjusted gross margin fell to 27.3% from 59% in the same quarter last year.
Looking ahead, Micron projects current quarter revenue to be between $4.5 billion and $4.8 billion, the midpoint of $4.65 billion being slightly below analysts' forecast of $4.75 billion. The company expects earnings-per-share to range between 31 and 41 cents, the midpoint of 36 cents being lower than analysts’ expectations of 39 cents.
"With our strong execution and improving industry conditions, we are optimistic that Micron's fiscal second quarter will be the cyclical bottom for our financial performance," said CEO Sanjay Mehrotra.
MU saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 12, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for MU moved out of overbought territory on April 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
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 Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 61 cases where MU's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 02, 2024. You may want to consider a long position or call options on MU as a result. In of 99 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
MU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 244 cases where MU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock 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 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 (2.835) is normal, around the industry mean (6.676). P/E Ratio (0.000) is within average values for comparable stocks, (60.551). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.205). Dividend Yield (0.004) settles around the average of (0.021) among similar stocks. P/S Ratio (6.739) is also within normal values, averaging (32.744).
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