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3 Things To Watch For In Micron's Q3 Earnings Report

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  • (0:25) - Upcoming Micron Earnings Report: June 20th
  • (2:20) - Secular vs. Cyclical Growth
  • (6:00) - Cash Flow Importance For Micron
  • (8:50) - Expected Revenue and Guidance

On today’s episode of the Tech Talk Tuesday podcast, Ryan McQueeney previews the week’s hottest earnings report—that of memory chip giant Micron (MU - Free Report) —by giving investors three key things to watch for when the trendy company reports on Wednesday.

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Micron has emerged as one of Wall Street’s most popular growth stocks over the past year—or even two years—as the company has continued to ride the rising tide of demand for its core products even higher. Demand is rising because the advent of new technologies like cloud computing, artificial intelligence, and the Internet of Things has increased data production, creating unique memory needs.

It is important to consider that Micron finds itself entrenched in several explosive growth markets and will likely have the eyes of the entire technology sector planted firmly on its upcoming earnings report. Add this to the fact that Micron shares have soared more than 85% in the past year, and it is easy to see why the stakes are so high for the firm this week.

Keeping this in mind, Ryan gives investors three key things to look for in Micron’s earnings report and subsequent conference call. These include secular vs. cyclical growth indicators; cash flow growth; and the basics such as earnings, revenue, and guidance.

Determining if Micron sees the end of cyclical trends causing headwinds in the near future will be of interest to investors as the market debates whether the stock can keep climbing higher. If management can prove that secular trends are just starting to heat up, Micron could be poised for even more gains.

Likewise, investors will be interested in seeing whether Micron is positioning itself for future stability with strong cash flow growth. Micron has plenty of debt on its books, but as of late, it has also added plenty of cash to its existing pile. Continuing that trend will be of great importance to the firm going forward.

And finally, Micron is a hot growth stock, so the market will want to see just that: strong earnings and revenue growth. Plus, these high-flying tech stocks tend to react strongly to forward guidance, so Ryan digs into the latest estimate revision trends to gauge the temperature of Micron heading into its report date.

Make sure to check out the show to hear more!

As a reminder, if you feel that we missed something, or if you want us to cover a different story, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating!

As always, thanks for listening to the Zacks Tech Talk Tuesday Podcast; we will see you next time!

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