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Micron (MU) Set to Report Q2 Earnings: What's in the Offing?
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Micron Technology (MU - Free Report) is slated to report second-quarter fiscal 2022 results on Mar 29.
The company projects fiscal second-quarter adjusted earnings of $1.95 (+/- 10 cents) per share. The Zacks Consensus Estimate for its quarterly earnings stands at $1.95 per share and has remained unchanged over the past 60 days. The consensus mark indicates a 98.9% surge from the year-ago quarter.
Meanwhile, Micron estimates revenues of $7.5 billion (+/- $200 million). The consensus mark for revenues is pegged at $7.51 billion, suggesting a 20.4% increase from the year-earlier period.
The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5%.
Let’s see how things have shaped up before this announcement.
Micron’s second-quarter results are likely to benefit from solid memory chip demand across all its end markets. The pandemic-led work-and-learn-from-home trend has fueled significant demand for personal computers (PCs) and notebooks.
The remote-working and online-learning trend amid the COVID-19 crisis has also stoked demand for cloud storage. Furthermore, lockdowns and social distancing measures have fueled the usage of online and e-commerce services globally, compelling data center operators to enhance their capacities to accommodate the demand spike for cloud services. All these factors are likely to have aided MU’s top line during the quarter under review.
A solid uptick in the dynamic random access memory bit shipments for the cloud, graphics, PC and notebook, 5G and automotive markets is anticipated to have acted as an upside during the to-be-reported quarter. On its first-quarter fiscal 2022 earnings conference call, Micron stated that demand from PC customers is stable and demand across other end markets remains strong.
However, industry-wide component supply constraints are expected to have hurt Micron’s top and bottom lines in the second quarter. Furthermore, MU is witnessing supply constraints for certain integrated circuit components, which are expected to have negatively impacted the bit shipments in the quarter under review.
The memory chip maker’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. The restrictions on exports to Huawei might have hurt the top line of the memory chip maker.
Additionally, a higher mix of lower-margin NAND, coupled with low memory prices and a minimal decline in manufacturing costs, is expected to have strained margins.
Moreover, operating expenses are expected to have flared up during the fiscal second quarter due to the resumption of the previously delayed fiscal 2021 salary hikes. This might have hurt Micron’s margins and profitability during the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Micron this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Micron currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Dave & Buster's Entertainment (PLAY - Free Report) , Fastenal (FAST - Free Report) and Washington Federal (WAFD - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Dave & Buster's Entertainment is set to report fourth-quarter fiscal 2022 results on Mar 28. The company sports a Zacks Rank #1 and has an Earnings ESP of +5.93% at present. Dave & Buster's Entertainment’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 218.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at 59 cents per share, suggesting a strong improvement from the year-ago quarter’s loss of $1.19. PLAY’s quarterly revenues are estimated to increase 214.2% year over year to $367.1 million.
Fastenal currently carries a Zacks Rank #2 and has an Earnings ESP of +0.46%. The company is slated to report its first-quarter 2022 results on Apr 13. Fastenal’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same on one occasion, the average surprise being 3.3%.
The Zacks Consensus Estimate for Fastenal’s first-quarter earnings stands at 44 cents per share, implying a year-over-year increase of 18.9%. FAST is estimated to report revenues of $1.67 billion, which suggests growth of 17.9% from the year-ago quarter.
Washington Federal carries a Zacks Rank #3 and has an Earnings ESP of +0.72%. The company is expected to report second-quarter fiscal 2022 results on Apr 12. Washington Federal’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.2%.
The Zacks Consensus Estimate for WAFD’s second-quarter earnings is pegged at 70 cents per share, indicating year-over-year growth of 25%. The consensus mark for revenues stands at $148.8 million, suggesting a year-over-year increase of 7.4%.
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Micron (MU) Set to Report Q2 Earnings: What's in the Offing?
Micron Technology (MU - Free Report) is slated to report second-quarter fiscal 2022 results on Mar 29.
The company projects fiscal second-quarter adjusted earnings of $1.95 (+/- 10 cents) per share. The Zacks Consensus Estimate for its quarterly earnings stands at $1.95 per share and has remained unchanged over the past 60 days. The consensus mark indicates a 98.9% surge from the year-ago quarter.
Meanwhile, Micron estimates revenues of $7.5 billion (+/- $200 million). The consensus mark for revenues is pegged at $7.51 billion, suggesting a 20.4% increase from the year-earlier period.
The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5%.
Let’s see how things have shaped up before this announcement.
Micron Technology, Inc. Price and EPS Surprise
Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. Quote
Factors at Play
Micron’s second-quarter results are likely to benefit from solid memory chip demand across all its end markets. The pandemic-led work-and-learn-from-home trend has fueled significant demand for personal computers (PCs) and notebooks.
The remote-working and online-learning trend amid the COVID-19 crisis has also stoked demand for cloud storage. Furthermore, lockdowns and social distancing measures have fueled the usage of online and e-commerce services globally, compelling data center operators to enhance their capacities to accommodate the demand spike for cloud services. All these factors are likely to have aided MU’s top line during the quarter under review.
A solid uptick in the dynamic random access memory bit shipments for the cloud, graphics, PC and notebook, 5G and automotive markets is anticipated to have acted as an upside during the to-be-reported quarter. On its first-quarter fiscal 2022 earnings conference call, Micron stated that demand from PC customers is stable and demand across other end markets remains strong.
However, industry-wide component supply constraints are expected to have hurt Micron’s top and bottom lines in the second quarter. Furthermore, MU is witnessing supply constraints for certain integrated circuit components, which are expected to have negatively impacted the bit shipments in the quarter under review.
The memory chip maker’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. The restrictions on exports to Huawei might have hurt the top line of the memory chip maker.
Additionally, a higher mix of lower-margin NAND, coupled with low memory prices and a minimal decline in manufacturing costs, is expected to have strained margins.
Moreover, operating expenses are expected to have flared up during the fiscal second quarter due to the resumption of the previously delayed fiscal 2021 salary hikes. This might have hurt Micron’s margins and profitability during the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Micron this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Micron currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Dave & Buster's Entertainment (PLAY - Free Report) , Fastenal (FAST - Free Report) and Washington Federal (WAFD - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Dave & Buster's Entertainment is set to report fourth-quarter fiscal 2022 results on Mar 28. The company sports a Zacks Rank #1 and has an Earnings ESP of +5.93% at present. Dave & Buster's Entertainment’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 218.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at 59 cents per share, suggesting a strong improvement from the year-ago quarter’s loss of $1.19. PLAY’s quarterly revenues are estimated to increase 214.2% year over year to $367.1 million.
Fastenal currently carries a Zacks Rank #2 and has an Earnings ESP of +0.46%. The company is slated to report its first-quarter 2022 results on Apr 13. Fastenal’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same on one occasion, the average surprise being 3.3%.
The Zacks Consensus Estimate for Fastenal’s first-quarter earnings stands at 44 cents per share, implying a year-over-year increase of 18.9%. FAST is estimated to report revenues of $1.67 billion, which suggests growth of 17.9% from the year-ago quarter.
Washington Federal carries a Zacks Rank #3 and has an Earnings ESP of +0.72%. The company is expected to report second-quarter fiscal 2022 results on Apr 12. Washington Federal’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.2%.
The Zacks Consensus Estimate for WAFD’s second-quarter earnings is pegged at 70 cents per share, indicating year-over-year growth of 25%. The consensus mark for revenues stands at $148.8 million, suggesting a year-over-year increase of 7.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.