Micron Stock earnings after hours on Tuesday June 25, easily beat estimates. Part of the reason of course was that estimates had been cut. At one point earnings expectations were as high as $1.36 a share before being cut several times down to 79 cents a share.
Micron earned $1.05 versus 79 cents expected. While the earnings were terrific in relation to estimates, they were well down from last year for the same quarter when they reported $3.15 a share. However as you can see in the chart below, last June the stock was trading above $55 and now it is down to below $33 for a drop of 40% which is somewhat in keeping with the drop in earnings. In other words, to an extent, the stock price has remained relative to what the earnings are coming in at.
With today’s earnings the stock should be able to push to $40 but that could be the end of the rally in the stock. In fact, if there is more doom and gloom from analysts for Micron, the stock may not pop that high at all and instead it may move back to just below $30.
Doom and Gloom
For Micron, analysts have been downright bears as they slashed their outlooks repeatedly over the past year. Now that the company’s latest earnings beat their reduced estimates, watch for more reports and downgrades from analysts if the trade war continues and tariffs remain unchanged. This though should open up some opportunities.
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Get Ready For More Doom and Gloom on Micron Stock (MU) But Opportunities Lie Ahead – Jun 25 2019
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