Micron Technology (MU.US), an American producer of computer memory and computer data storage, plunged 5% during today’s US session. Interestingly, the company topped earnings expectations and issued impressive quarterly outlook. For the quarter ended June 3, Micron had revenue of $7.42 billion (+36% YoY), above the consensus estimate of $7.23 billion. Non-GAAP profits of $1.88 per share topped analysts’ forecast of $1.71 and the company’s guidance of $1.62 per share.
For the current quarter, the firm expects revenue of $8.2 billion, give or take $200 million - ahead of analysts’ consensus at $7.9 billion. Non-GAAP profits are expected to reach $2.30 per share, give or take 10 cents, above analysts’s estimate of $2.18 per share.
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Create account Try a demo Download mobile app Download mobile appCEO of Micron Technology said that the company is seeing strong growth across all end markets, including PCs, handsets, cloud, and automotive. Even though the semiconductor shortage is impacting the demand in some areas, the demand is expected to further improve as some of those issues ease.
Micron stock tested an upward trendline in the second half of June - the trendline may be seen as the near-term support given the ongoing pullback. Apart from that, the area near $74.50 may be the critical support based on previous price action. On the other hand, one can notice that the price was not able to break above the 100-day moving average (green line) in June - this would be the first major obstacle for buyers if the stock recovers. Source: xStation5
