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

Radek Strnad /
2022/12/20 4:44 am EST

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

Last quarter Micron Technology reported revenues of $6.64 billion, down 19.7% year on year, missing analyst expectations by 1.95%. It was a weak quarter for the company, with a revenue decline and underwhelming revenue guidance for the next quarter.

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

This quarter analysts are expecting Micron Technology's revenue to decline 45.6% year on year to $4.14 billion, a deceleration on the 33.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at -$0.02 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 missed Wall St's revenue estimates twice over the last two years.

Looking at Micron's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Allegro MicroSystems delivered top-line growth of 22.7% year on year, beating analyst estimates by 5.61% and Intel reported revenue decline of 20% year on year, exceeding estimates by 0.24%. Allegro MicroSystems traded up 5.69% on the results, Intel was up 1.41%. Read our full analysis of Allegro MicroSystems's results here and Intel's results here.

There has been a stampede out of high valuation technology stocks and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 3.97% over the last month. Micron Technology is down 10% during the same time, and is heading into the earnings with analyst price target of $66.26, compared to share price of $51.50.

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.