Micron Technology, Inc. (NASDAQ:MU) Posts Earnings Beat, Ends Q3 Net Cash Positive

Micron Technology, Inc. (NASDAQ:MU) Posts Earnings Beat, Ends Q3 Net Cash Positive

Micron Technology, Inc. (NASDAQ:MU) Posts Earnings Beat, Ends Q3 Net Cash Positive

just released its latest quarterly financial results, posting non-GAAP earnings of $3.15 per share and revenues of $7.80 billion.

Currently, MU is a Zacks Rank #1 (Strong Buy), but that could change based on today’s results. Shares of the company have gained about 6.8% over the past month but dropped about 0.5% during regular trading hours today.

The stock is currently down 0.9% to $58.40 per share in after-hours trading shortly after its earnings report was released.

Micron:

Beat earnings estimates. The company posted non-GAAP earnings of $3.15 per share, beating the Zacks Consensus Estimate of $3.14. Investors should note that this consensus projection has trended upward/downward over the duration of the quarter.

Beat revenue estimates. The company saw revenue figures of $7.80 billion, edging out our consensus estimate of $7.75 billion. Total revenue was up 40% year over year.

GAAP net income was $3.82 billion, or $3.10 per share. Gross margin as a percentage of sales came in at 60.6%, an improvement from the 46.9% seen in the prior-year quarter. Operating income was $3.95 billion, up from just $1.97 billion last year. Operating cash flow for the quarter was $4.26 billion, compared with $2.41 billion in the year-ago period.

“We set new records for revenue in SSDs, Mobile Managed NAND and Automotive solutions along with Cloud/Enterprise and Graphics DRAM Memory. We see ongoing momentum and healthy industry fundamentals in the fourth quarter to close out an exceptionally strong fiscal 2018,” said CEO Sanjay Mehrotra.

During the quarter, Micron repurchased or converted $2.31 billion of its debt, lowering its total debt load to $7.34 billion. The company ended in a net cash positive position, with cash and equivalents of $7.68 billion.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 63.72.

The projected lower bound is: 54.52.

The projected closing price is: 59.12.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.3140. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.93. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 14 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 16. This is not a topping or bottoming area. The last signal was a sell 14 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 11 period(s) ago.

Rex Takasugi – TD Profile

MICRON TECH closed down -0.300 at 58.950. Volume was 5% above average (neutral) and Bollinger Bands were 58% narrower than normal.

Open High Low Close Volume___
60.130 61.120 58.800 58.950 57,497,568

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 59.71 54.55 46.88
Volatility: 26 54 56
Volume: 44,581,160 49,128,168 46,204,536

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

MICRON TECH is currently 25.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of MU.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on MU.O and have had this outlook for the last 27 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.