Micron Technology Anticipates Higher Earnings and Revenue

Micron is expected to release third-quarter figures for fiscal 2018

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U.S. global producer and provider of memory technologies, Micron Technology Inc. (MU, Financial) is expected to release financial results for the third quarter of fiscal 2018 after market close on Wednesday, June 20.

For the third quarter of fiscal 2018, analysts forecast Micron will report earnings of $31.20 per share, based on non-GAAP estimates. This is an average of a total of 24 estimates and represents a hefty improvement from the comparable quarter of 2017 when the tech company closed with a net profit of $1.62 per share.

Estimates on third quarter earnings range between a low of $2.87 and a high of $3.18.

Analysts forecast that earnings will be backed on revenue of $7.75 billion. That is a mean value of a total of 25 estimates. Estimates on third-quarter revenue range between a low of $7.5 billion and a high of $8.05 billion. The average estimate on the quarterly revenue represents a 39.3% growth from the prior-year quarter.

The company has a net margin of 38.68% versus an industry median of 4.9%.

GuruFocus gives Micron a profitability and growth rating of 8 out of 10.

With the earnings announcement report for fiscal fourth quarter, Micron will also provide its shareholders with an update of its balance sheet. The most relevant figures of the most recent quarter were as follows: Micron reported approximately $8.04 billion in cash on hand and securities of $6.93 per share and about $9.33 billion in total debt for a total debt-equity ratio of 35.12%. According to GuruFocus, the industry has a total debt-equity ratio of 35%. Micron is almost on par with its industry.

As of March 1, Micron has total current assets and liabilities valued $15.84 billion and $6.14 billion for a current ratio of 2.6. The industry has a current ratio of 2.27. This means that Micron can meet its short-term obligations much easier than its peers with cash available on hand and other short-term cash conversion cycle assets.

GuruFocus gives Micron a financial strength rating of 7 out of a total of 10.

Micron is trading at $59.18 per share and is 36% up, so far this year. The share price is above the 50-SMA line, as you can see in the chart powered by GuruFocus.

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The stock has a market capitalization of $68.63 billion, a price-book (ratio of 2.67 versus an industry median of 1.99, a price-earnings ratio of 7.14 versus an industry median of 22.62 and a price-sales ratio of 2.77 towards an industry median of 1.83.

The tech-stock is currently trading about $5.50 below the 52-week high of $64.66 per share. The 52-week low is $26.85 per share.

For Micron, analysts’ average target price per share is $76.79, which represents a nearly 30% upside from the current market value. The recommendation rating is 2 out of 5.

Disclosure: I have no position in Micron Technology.