Micron Technology (MU) is set to release its second quarter earnings tomorrow afternoon. The company has had an impressive run in the past year, exceeding revenue expectations by 8.8% in the previous quarter with revenues of $5.82 billion, which was a 57.7% increase year on year.
This performance included a significant improvement in gross margin and beat analysts’ EPS estimates. As a result, Micron Technology is currently considered a buy according to analysts. However, there is some concern among investors about the company’s ability to maintain this level of growth as it competes against larger players in the semiconductor industry.
In the upcoming quarter, analysts are expecting Micron Technology’s revenue to grow by 77.9% year on year to $6.67 billion, which would represent a reversal from the 56.6% decrease in the same quarter last year. Adjusted earnings are anticipated to be $0.53 per share, which is above Wall Street’s estimates for both revenue and earnings per share (EPS).
Despite these positive predictions, analysts have generally maintained their estimates for Micron Technology over the past month, indicating confidence in the company’s performance leading up to earnings. However, this is not without risk as Micron Technology has missed Wall Street’s revenue estimates four times in the past two years.
Overall, Micron Technology’s results will offer insight into the upcoming quarter for semiconductor stocks and could be particularly important given that it is one of the first competitors to report earnings this season. For more information on this fallen angel growth story that is recovering from setbacks, click here to claim your special free report.
