Earnings Preview: Micron Technology

| About: Micron Technology (MU)

Company Profile

Micron Technology (NASDAQ:MU), together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide.

Micron is scheduled to report its third-quarter earnings results on June 20, 2012, after themarket close.

Technical Overview

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Micron has a market cap of $6.04 billion and it is currently trading around $6.10, with a 52-week range of $3.97 to $9.16. The stock has fallen 3.02% year to date. The following table provides the key financial ratios for Micron:

Key Ratio


Current Ratio


Forward P/E


Profit Margin


Return On Assets (ROA)


Return On Equity (ROE)


Recent News

  • On June 12, 2012, Micron introduced a new class of 1GHz, 2-gigabit (GB) and 4Gb, 30-nanometer ((NYSE:NM)) DDR3 devices, strengthening the company's comprehensive DDR3 portfolio.
  • On May 10, 2012, Micron confirmed it is engaged in discussions with Elpida Memory's trustees to acquire Elpida's business.
  • On May 8, 2012, Micron announced its participation in the MobileFocus editor event being held in the Hyatt Regency New Orleans in conjunction with CTIA Wireless 2012.
  • On May 8, 2012, The Hybrid Memory Cube Consortium (HMCC), led by Micron Technology and Samsung Electronics, announced that Microsoft (NASDAQ:MSFT) has joined the consortium. The HMCC is a collaboration of original equipment manufacturers (OEMs), enablers and integrators who are cooperating to develop and implement an open interface standard for an innovative new memory technology called the Hybrid Memory Cube ((NYSE:HMC)).
  • On May 7, 2012, Micron announced development of its first fully functional DDR4 DRAM module. The company has begun sampling and has received feedback from major customers to support quick implementation for applications in 2013.
  • On April 17, 2012, Intel (NASDAQ:INTC) and Micron Technology announced that their industry-leading 20nm NAND was named Semiconductor of the Year in the 10th Annual Insight Awards hosted by UBM TechInsights.
  • On April 13, 2012, Micron announced the pricing of an offering of $480.0 million aggregate principal amount of its 2.375% convertible senior notes due 2032 (the "2032C Notes") and $390.0 million aggregate principal amount of its 3.125% convertible senior notes due 2032 (the "2032D Notes" and, together with the 2032C Notes, the "Notes").
  • On April 10, 2012, Micron announced a new solid-state drive ((NYSE:SSD)) that broadens Micron's client product portfolio to serve the rapidly emerging Ultrabook category.
  • On March 29, 2012, Micron announced that it reached an agreement with Oracle America (NASDAQ:ORCL) to settle a lawsuit filed by Oracle against Micron in the U.S. District Court for the Northern District of California.

Analyst Guidance and Earnings History

The third-quarter revenues are expected to be $2.00 billion when compared to $2.14 billion for the same quarter last year. Earnings per share for the third quarter are expected to be loss of 20 cents a share, down from 7 cents a share in the year-ago period. The average price target from analysts for Micron is $10.40, with an average rating of Overweight.

Out of the last four quarters, Micron has missed EPS estimates all four times. The following chart shows the analysts' estimates history and the actual EPS results:

The following chart shows the annual summary of sales and net income for Micron:


SanDisk (SNDK), Spansion (CODE), and Rambus (NASDAQ:RMBS) are considered to be major competitors for Micron. The table below provides the key metrics for these companies:

Name Micron Technology
Price $6.10 $37.17 $11.11 $5.71
Year-To-Date Price -24.14% -10.04% -40.85% -60.00%
Market Capitalization $5.9B $9.0B $634.3M $616.1M
Earnings per Share -0.55 3.58 -0.95 -0.61
Total Revenue $8.4B $5.6B $964.4M $312.7M
Employees (Full-Time) 26100 3939 3375 456

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in MU over the next 72 hours. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.