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.

Also Read:  For DocuSign, sustained eSignature adoption is crucial to meet growth targets

Most Popular

COVID-19 drove retailers up the digital path years ahead than anticipated

Earlier we looked into how, during the COVID-19 pandemic, retailers saw changing trends in terms of their assortments and how the acceleration of online shopping led many of them to

Snowflake (SNOW) creates a record as the most successful software IPO ever; stock more than doubles

Data is at the heart of business innovation. Recognizing this trend, companies are seeking ways to transform their businesses by capturing, analyzing, and mobilizing data. The public cloud is becoming

Adobe (ADBE) sees new tailwinds as virtual shift gathers steam

The second half has been highly rewarding for design software maker Adobe Inc. (NASDAQ: ADBE) amid stable demand for digital content solutions. The company has remained unaffected by the virus-related

Top