The Closing Print live trading and financial blog during market hours.

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

Considering the CEOs from nVidia and Cisco said the same thing about “the cloud” and “enterprose data center growth” it would be safe to say this trend persists. Most likely Micron will once again point to growth in these areas of the business in the upcoming earnings call.
“Micron Technology Inc. said DRAM chip sales surged 61% from the year-ago quarter.” – December 2017
With this in mind, lets consider the technicals.
Daily price action has been on a tear lately, reflecting optimism with this semiconductor stock. MACD illustrates bulls are in charge of momentum. Bollinger bands continue to expand, reflecting potential targets of 50 and 53 might be achieved before the earnings announcement. Finally, volume suggests institutions are furiously acquiring shares of Micron. We already know David Tepper likes MU.

Micron daily Earnings Run

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.

Micron Weekly Earnings

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.

Micron Monthly Earnings

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.

Futures are higher. 

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.

SPY 274.40 AH blocks Micron

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.

We will be LIVE at 9:20 AM.

Happy Wednesday,

Vinny



https://theclosingprint.com/CV_Blog/fate-equity-markets-leading-seasonally-strong-period/

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.

Investment Warnings

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.