Micron’s After-Hours Earnings Might Make The Stock Pop
Micron (MU) is set to report its second-quarter earnings today after markets close.
For those not familiar with Micron, they’re a major player in the semiconductor space.
Micron is one of the largest semiconductor companies in the world and specializes in memory and storage chips. Its primary revenue stream comes from dynamic random-access memory (DRAM).
They also serve a global customer base, selling chips into data centers, mobile phones, consumer electronics, and industrial and automotive applications.
Micron has huge potential — as does any stock in this sector right now — but it’s lagging far behind the king of semiconductors since early 2023…
But today I think we could see a pop that attempts to close some of that gap.
Last quarter, Micron beat analysts’ revenue expectations by 8.8%…
Over the following week, shares surged as high as 8.5%, but it wasn’t just the beat that was impressive:
The company’s revenue climbed 57.7% compared to the year prior — that’s some serious growth.
Now, COVID was great for Micron… But in the second half of 2022 and all of 2023 Micron saw shrinking revenue.
But as we saw from this past quarter, the tides are turning. Analysts are expecting Micron’s revenue to grow 77.9% year-over-year to $6.67 billion. That’s a staunch reversal from the 56.6% decrease in revenue it recorded in the same quarter last year.
Take a look at Micron’s revenue back to 2019:
You can see the 2022 and 2023 dip in revenue along with the recent revenue growth MU has been experiencing.
But here’s something really interesting…
Wall Street Analysts covering Micron have reconfirmed their estimates over the last month, and suggest that the business will stay its great course heading into earnings.
However, Micron has missed Wall Street’s revenue estimates four times over the last two years… That gives us a hit rate of right at 50%… A coin flip essentially.
And I can tell many traders feel that way as well:
As you can see, there’s a ton of options action on Micron, but it’s quite a mixed bag of bearish and bullish positions.
But as I’ve shared before, I’m a momentum guy and Micron has some serious momentum heading into this earnings season. The stock is already up 66% this year and analysts are expecting that trend to continue…
So I am pretty biased to the upside on MU as we trade it today, but I’ll share a little hedge technique during the class as well.
Graham and I will be trading Micron’s earnings live today @ 3pm for free and we will be sharing our accounts and real trades so you can follow along if you’d like.
[link expired – this live class has already passed]
Hopefully, we get a result as beautiful as Nvidia was during our last live room!
— Nate Tucci
