Categories Earnings, Technology

What to watch when Micron (MU) reports Q2 earnings

Analysts expect the company to report earnings of $0.37 per share on revenue of $4.6 billion

Micron Technology Inc. (NASDAQ: MU) is scheduled to report second quarter 2020 earnings results on Wednesday, March 25, after the closing bell. Analysts expect the company to report earnings of $0.37 per share on revenue of $4.6 billion.

The company has seen falling revenues over the past two quarters due to low demand for microprocessors. The second quarter results are expected to take a hit from the coronavirus outbreak which has disrupted the operations of most companies.

Micron derives a significant portion of its revenue from China and it remains to be seen how much of an impact the pandemic has had on its topline. Low prices and higher expenses are likely to weigh on margins in the quarter. Micron also faces tough competition in the industry.  

Looking ahead, Micron can be expected to benefit from the rising demand for data and the rollout of the 5G technology. As machine learning and artificial intelligence gain in prominence, the demand for data increases.

In the first quarter of 2020, Micron beat market estimates despite recording decreases in revenue and earnings. Revenues fell 35% to $5.14 billion while adjusted EPS dropped 84% to $0.48. The company saw double-digit revenue declines in all its segments.

For the second quarter, the company has guided for revenues of $4.5-4.8 billion and adjusted earnings of $0.29-0.41 per share. It will be worth watching how much of an impact the current situation will have on the third quarter outlook.

Micron’s stock has dropped 32% since the beginning of this year and 36% in the past one month. If the company beats estimates, the stock could see a pickup.

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top