Will Micron (MU) Keep Its Earnings Streak Alive In Q4?
Zacks Investment Research | Sep 22, 2017 07:43AM ET
Micron Technology Inc. (NASDAQ:MU) is set to report fourth-quarter fiscal 2017 results on Sep 26. Last quarter, the company posted a positive earnings surprise of 8.7%. Over the last four quarters, it has outperformed the Zacks Consensus Estimate with an average positive earnings surprise of 23.1%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Micron offers both DRAM and NAND products. While DRAM chips are key components in PCs, NAND flash chips are crucial for portable electronic devices. So far, the fiscal 2017 has been marvellous for the company.
In the last reported quarter, Micron’s top and bottom lines surpassed the respective Zacks Consensus Estimate, as well as marked tremendous year-over-year growth, primarily due to pricing improvement in DRAM and NAND sales volume.
We believe that the improving prices for DRAM and NAND chips make investors confident about Micron’s growth. Per various sources, prices for these specific chips have improved chiefly due to a better product-mix optimization and higher-than-expected demand for PCs, servers and mobiles.
We believe that any elevation in prices will have a favorable influence on the company’s top line, the benefit of which will likely trickle down to the bottom line. The benefit from improved pricing was well reflected in the company’s last quarterly results as well. We anticipate these benefits to reflect in the to-be-reported quarter as well.
Currently, the Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $1.83 on $5.95-billion revenue projection.
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