Micron Earnings Trends
Micron Technology, Inc. (MU) is expected to report earnings on 03/22/2018 after market close. The latest report will be for the fiscal quarter ending Feb’18. Analysts’ project a consensus EPS forecast for the quarter at $2.69. Micron reported EPS for the same quarter last year of $0.77.
In an analyst call, Micron Chief Executive Sanjay Mehrotra said “cloud and traditional enterprise data-center growth is driving demand for DRAM chip, the largest part of Micron’s business.” – Marketwatch
“Micron Technology Inc. said DRAM chip sales surged 61% from the year-ago quarter.” – December 2017
The weekly time frame reflects similar optimism as Bollinger bands begin expanding. That said, we reflect on previous occurrences for directional bias. MACD is turning and price action is above VBP resistance levels, meaning there is no overhead supply to slow down Micron’s progress.
The last earnings run was quite spectacular leading into the December report.
We find the monthly chart somewhat enlightening, as price action breaks above levels not seen since the dotcom days. Note previous moves lower were highlighted by a trigger below 70 on RSI and a MACD bear cross. These two observations suggests a bullish bias continues.
A push above 50 would lead to the next target zone at 97.50. Of course its anyone’s guess how long that could take. Grin.
Considering the above, we wanted to point out that we are long term bullish on Micron. Recent profit taking on day trades and swing positions were due to gains in options positions, nothing more.
SPY is also trading above blocks posted in the AH session (274.43 +/-). We are bullish above this level to start the day. Watch for price action that accelerates into Tuesday price action.
Remember the Cycle is up in all indices and all sectors, so anticipate volatility will bounce price action around quite a bit as VIX rises along with fears of a rise in the 10 year treasury yield.
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.