Earnings Preview: Micron

Mar.22.12 | About: Micron Technology (MU)

Micron (NASDAQ:MU) is expected to report Q2 earnings after the market close on Thursday, March 22, with a conference call scheduled for 4:30 pm ET.


The consensus estimate is (19c) for EPS and $2.02B for revenue, according to First Cal. The stock has soared roughly 40% since the beginning of the year, and more than 50% over the last three months. The optimism is based on signs that the PC market is rebounding. Micron calls have also been active on renewed takeover chatter.

Analyst Views

Wedbush expects Micron's quarter-over-quarter net loss to lessen on a better DRAM pricing environment. While Micron doesn't provide guidance, Wedbush looks for management to offer constructive commentary on the memory market driven by continued improvements in the DRAM market and considerable tailwinds for NAND -- i.e. solid state drives, or SSDs, smartphones, and tablets. Wedbush looks for Micron to return to profitability in Q3, benefiting from additional NAND supply from increasing ownership in IM Flash, as well as Elpida's bankruptcy, which the firm believes will likely accelerate the DRAM industry's overall recovery.