Micron Technology (MU) To Report Earnings Tomorrow: Here Is What To Expect

Petr Huřťák /
2022/09/28 8:39 am EDT

Memory chips maker Micron (NYSE:MU) will be reporting earnings tomorrow afternoon. Here's what investors should know.

Last quarter Micron Technology reported revenues of $8.64 billion, up 16.4% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in gross margin but revenue guidance for the next quarter below analysts' estimates.

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This quarter analysts are expecting Micron Technology's revenue to decline 18.1% year on year to $6.77 billion, a further deceleration on the 36.6% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 per share.

Micron Technology Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing twelve downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.41%.

Looking at Micron Technology's peers in the semiconductors segment,  some of them have already reported earnings results, giving us a hint of what we can expect. AMD delivered top-line growth of 70.1% year on year, beating analyst estimates by 0.31% and Qualcomm reported revenues up 35.6% year on year, exceeding estimates by 0.76%. AMD traded down 4.73% on the results, and Qualcomm was down 2.22%. Read our full analysis of AMD's results here and Qualcomm's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 14.9% over the last month. Micron Technology is down 12.5% during the same time, and is heading into the earnings with analyst price target of $71, compared to share price of $49.98.

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