Micron (MU) Q2 Earnings: What To Expect

Radek Strnad /
2022/03/28 8:00 am EDT

Memory chips maker Micron (NYSE:MU) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Micron reported revenues of $7.68 billion, up 33.1% year on year, in line with analyst expectations. It was a strong quarter for the company, with a significant improvement in gross margin and guidance for the next quarter above analyst estimates.

Is Micron buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Micron's revenue to grow 20.7% year on year to $7.53 billion, slowing down from the 29.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.98 per share.

Micron Technology Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and two downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.59%.

Looking at Micron's peers in the semiconductors segment, only Broadcom has so far reported results, delivering top-line growth of 15.7% year on year, and beating analyst estimates by 1.3%. The stock traded up 2.95% on the results. Read our full analysis of Broadcom's earnings results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.78% over the last month. Micron Technology is down 11.3% during the same time, and is heading into the earnings with analyst price target of $112.5, compared to share price of $78.78.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.