by Ian Harvey
March 23, 2020
Micron Technology will report earnings after the market closes on Wednesday, March 25, 2020. The consensus earnings estimate is for $0.37 per share on revenue of $4.66 billion; but the Whisper number is higher at $0.41 per share.
Despite the coronavirus, Fed rate cuts, global disruption and panic, as well as several other factors could see MU beat-the-market!
See how we are profiting from this situation!
Expect another potentially volatile week for markets as coronavirus cases continue to rise and economic data reveals the outbreak’s damage on the U.S. economy.
Asian stocks and U.S. equity futures tumbled after a surge in the global death toll from the coronavirus and a failure as yet by Congress to agree on an aid plan. Treasury yields retreated.
The Dow Jones Industrial Average futures fell more than 800 points, or 4.7%, along with S&P 500 and Nasdaq-100 futures. Earlier in the session, futures hit their “limit down” levels, falling 5%. Downside limits to futures contracts are implemented to ensure orderly market behavior once trading hits a certain threshold. No trades below that level are allowed.
The Dow is off 35.1% from its Feb. 12 peak, while the S&P 500 is 32% and the Nasdaq is down nearly 30% from their Feb. 19 peaks.
A fiscal stimulus bill failed a key procedural Senate vote Sunday as Democrats warned the measure did not do enough to help workers and too much to bail out companies.
Markets are “pricing a global recession, which we expect; stay defensive,” Goldman Sachs Group Inc. strategists Kamakshya Trivedi and Zach Pandl, wrote in a note Sunday. “The uncertainties around the depth and duration of the hit to the global economy remain high and the momentum in our own, and other, economic forecasts continues to be sharply negative with downside risks.”
Wall Street has been clamoring for fiscal economic relief as the number of coronavirus cases keep surging. The number of confirmed global cases surpassed 300,000 over the weekend as deaths now total over 13,000, according to data from Johns Hopkins University.
On top of that, Federal Reserve Bank of St. Louis President James Bullard told Bloomberg News during a Sunday interview that he is forecasting the U.S. unemployment rate to hit 30% in the coming months as the world continues to grapple with the coronavirus pandemic. “This is a planned, organized partial shutdown of the U.S. economy in the second quarter,” he said.
The Expected Earnings Report.....
Micron Technology, Inc. (NASDAQ: MU), a memory chip manufacturer, will report earnings after the market closes on Wednesday, March 25, 2020. The consensus earnings estimate is for $0.37 per share on revenue of $4.66 billion; but the Whisper number is higher at $0.41 per share.
The company's guidance was for earnings of $0.29 to $0.41 per share. Consensus estimates are for earnings to decline year-over-year by 77.84% with revenue decreasing by 20.14%.
For the last reported quarter, it was expected that Micron Technology would post earnings of $0.48 per share when it actually produced earnings of $0.48, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Even with the coronavirus pandemic creating untold damage on the stock market it is possible that the server demand environment will be able to hold out. MU stock has sold off along with other chip names, pulling back about 40% from February highs.
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But, there are several reasons that Micron Technology may pull through this situation and gain back its momentum, due to.....
Other Influencing Factors.....
Despite the negative factors associated with.....
.....there is plenty of optimism for Micron Technology due to.....
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