Make Or Break For Micron? Here Is What To Expect From Tomorrow’s Report.

Micron Technology (MU) reports its FQ3 ’15 result after market on Thursday. Micron’s share price has continued to fall this week leading into its result. Year-to-date (YTD) Micron’s stock has fallen 29.65% as compared to the NASDAQ index which has appreciated 8.82%.

Estimize predicts an EPS figure of $0.67 and a revenue number of $3.997. Wall Street analysts however, predict an EPS figure of $0.58 and revenues of $3.949B. Micron has only provided guidance for revenue of $3.950B. As previously mentioned on Estimize.com, Micron’s upcoming report will be an important one as the result may well be a catalyst for the stock to rebound or continue its downward trajectory.

 

 

 

Owning stock in Micron is definitely not for the faint-hearted. Historical price action demonstrates the high levels of volatility this stock experiences over periods of time. The two charts below are a visual representation of the volatility in Micron’s stock price over varying time frames.

A major concern for Micron shareholders is the healthof the PC market and its effects on its DRAM revenue. Around 70% of Micron’s revenues are derived from DRAM and 35% of that is from the PC division. In addition to Morgan Stanley cutting their rating on Micron last week, Goldman Sachs analysts downgraded Micron’s stock this morning from “neutral” to a “sell” and cut their price target from $27.00 to $19.00 leading into the report.

Despite the negative news flow circulating the stock at present, Micron has achieved solid ROE numbers and still has a largely solid financial position. The company is also currently trading at a historically low PE Ratio (TTM) of 7.52X relative to its 5 year average of 12.28X. The chart below displays Microns PE Ratio (TTM) reflecting the stock’s recent plunge.