Micron Technology Inc.NASDAQ
Micron Technology: Given Future Potential, Patience Is A Virtue
Smart Value Investor • 69 Comments
Smart Value Investor • 69 Comments
Fri, Oct. 14, 4:47 AM
- Tech giants including AMD, Dell/EMC, Google (GOOG, GOOGL), HPE, IBM, Mellanox (NASDAQ:MLNX), Micron (NASDAQ:MU), Nvidia (NASDAQ:NVDA) and Xilinx (NASDAQ:XLNX) have linked up to give Intel (NASDAQ:INTC) a good kick in the datacenters.
- The group has come up with an open specification, dubbed OpenCAPI, that can boost server performance by up to 10x.
- Effectively they are moving away from PCIe, the current industry standard, to something that is both more open and vastly more powerful.
Wed, Oct. 5, 10:14 AM
- Remains Neutral, though moves from $18 to $16 (current price $17.67).
- Accounting changes affecting Micron Technology's (MU +0.4%) Q1 2017 EPS guidance estimates, causing the provided $0.13-$0.21 range to appear stronger than consensus, are considered in the call, with analysts at Stifel and Barclays (Overweight, $23 target) also noting the adjustment.
- Goldman Sachs' Mark Delaney: "While we believe DRAM market conditions could remain solid in the coming quarters, allowing Micron to achieve EPS near the higher-end of its guidance for 1QFY17, its ability to translate improved industry prices into better EPS and positive FCF continues to trail peers.”
- Shares in Micron Technology were volatile immediately on earnings going live, though are presently more stabilized, with an approximate 1% decline since yesterday's close.
- Q4 overview
- Update (10:34AM ET): Morgan Stanley maintains Overweight rating and $20 target, considering the quarter a "modest setback."
Tue, Oct. 4, 5:37 PM
Tue, Oct. 4, 4:21 PM
- Volatile after-hours trading activity in Micron Technology (NASDAQ:MU) as Q4 revenue ($3.22B) increased 11% Q/Q, though declined by that same rate Y/Y.
- Net loss attributable to shareholders of $56M vs. net loss of $79M Q/Q and net income of $399M Y/Y.
- DRAM and NAND sales volumes increased 20% and 12% Q/Q, respectively. DRAM average selling prices decreased 6% while NAND average selling prices remained unchanged over the same period.
- Micron Technology CEO Mark Durcan: "We are seeing improving market conditions in terms of both slowing supply growth and improving demand across a number of key segments. In addition, we continue to execute on our key initiatives related to the deployment of advanced technologies and products to advantage our customers."
- Projects Q1 2017 revenue of $3.55B-$3.85B, gross margin in the 23%-25.5% range, operating expenses of $600M-$650M, operating income of $245M-$330M and EPS of $0.13-$0.21. Further expects $5B of net capital expenditures in FY 2017 (40%-50% DRAM, 30%-40% non-volatile memory, 15%-25% technology/product enablement).
- Shares have gone negative, positive and presently, back lower by 2% since the report broke.
- Conference call
- Press release
Tue, Oct. 4, 4:07 PM
Mon, Oct. 3, 5:35 PM
Tue, Aug. 30, 10:16 AM
- Target to $20 up from $18 (current price $16.98).
- While remaining positive overall on Micron Technology (MU -0.2%), analyst Joseph Moore does note some possible upcoming supply volatility.
- Micron received upgraded targets yesterday at Deutsche Bank and Stifel Nicolaus, and gained traction on comments by HP's CEO last week citing component shortages.
Mon, Aug. 29, 8:22 AM
- A nice move continues for Micron Technology (NASDAQ:MU) following HP's results late last week, as Deutsche raises its price target to $20 from $16, and Stifel to $18 from $15.
- "Amid a recovery in DRAM, we are taking an in-depth look at normalized operating margin, which strongly correlates with price-to-book," says Deutsche's Romit Shah. "Our analysis indicates fair value of $20 per share based on operating margin of 10%."
- Shares +2.1% premarket to $16.85.
Thu, Aug. 25, 12:45 PM
- HP reported Q3 results yesterday and on its earnings call, CEO Dion Weisler noted "some shortages, particularly around LCDs, DRAM and Flash memory."
- Susquehanna analyst Mehdi Hosseini notes potential resulting favorability for Micron Technology (MU +6%), Western Digital (WDC +3%) and Corning (GLW +0.4%). The firm upgraded Micron to a Positive rating and $18 price target ($16.45 current price) in late June.
Fri, Aug. 19, 11:43 AM
- The chip sector is hot but no name is hotter than Advanced Micro Devices (AMD +10.9%). The company has been gradually rising since last August and has really hit its stride since returning to Y/Y revenue growth for the first time since 2014 in Q2.
- The only company remotely in the ballpark of this type of growth is Nvidia (NVDA +0.4%) with a now 170% increase over the last year.
- Comparably, Intel Corporation (INTC +0.5%) is up slightly over 23%, Micron Technology (MU +3.7%) around 2%, Applied Materials (AMAT +6.7%) nearly 80%, Analog Devices (ADI +0.4%) around 10%, ARM Holdings (ARMH -0.8%) around 56%, Linear Technology (LLTC +0.1%) around 46%, NXP Semiconductors (NXPI +1.2%) around 2%, Marvell Technology (MRVL +3.9%) slightly over 1%, Qualcomm (QCOM -0.4%) around 2.5%, Broadcom (AVGO +0.5%) around 26% and Texas Instruments (TXN +0.3%) around 43% for the same period.
- Advanced Micro Devices shares continues to increase following this week's operational-reveal of the company's highly anticipated Zen-core processors.
Mon, Jul. 25, 9:17 AM
Mon, Jul. 25, 9:08 AM
- The company after the close on Friday adopted a shareholder rights plan.
- Usually the hunter, Micron (NASDAQ:MU) was once a target of China's Tsinghua Unigroup, which was interested in purchasing at $21 per share. Micron's shares peaked this cycle at about $35.
- The stock's higher by 5.4% premarket to $13.84.
Thu, Jul. 7, 11:05 AM
- A boost in guidance from Western Digital (WDC +4.1%) is helping to lift some other chip stocks.
- The strong read-through on NAND chip sales have stoked some buying action on Micron (MU +5.1%), Seagate Technology (STX +1.7%), and Applied Materials (AMAT +1.2%) on optimism that NAND pricing will hold up in the second half of the year.
- Previously: Western Digital higher after hours on lift in guidance; CFO to exit (July 6)
Fri, Jul. 1, 3:00 PM
Fri, Jul. 1, 12:42 PM
Fri, Jul. 1, 9:13 AM