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Stock Market & Financial Investment News

News Breaks
June 23, 2014
14:27 EDTSNDK, MUEarnings Preview: Analysts bullish on Micron results, outlook
Micron (MU) is expected to report third quarter earnings after the close on Monday, June 23, with a conference call scheduled for 4:30 pm ET. Micron manufactures semiconductor devices, principally Dynamic Random Access Memory, or DRAM, NAND Flash and NOR Flash memory. EXPECTATIONS: Analysts are looking for earnings per share of 70c on revenue of $3.89B. The consensus range is 58c-79c for EPS on revenue of $3.75B-$4.29B, according to First Call. LAST QUARTER: Micron reported second quarter EPS, excluding certain gains, of 85c, compared to the 76c consensus estimate of analysts. Micron's quarterly revenue of $4.11B beat expectations for $3.99B. Revenues from sales of Trade NAND Flash products were 11% higher sequentially, primarily due to a 35% increase in sales volume offset by an 18% decrease in average selling prices. Revenues from sales of DRAM products were essentially unchanged in Q2 compared to the prior quarter, as both sales volumes and average selling prices remained stable. The company's overall consolidated gross margin was 34% in the quarter, compared to 32% in the prior quarter, as a result of a higher DRAM gross margin. STREET RESEARCH: The supply/demand dynamics for Micron and SanDisk (SNDK) are more favorable than Bank of America Merrill Lynch had previously believed, analyst Simon Dong-je Woo wrote in a note to investors on June 11. Among the reasons for the change in the firm's outlook are higher memory content in laptops and tablets made in China and more aggressive promotion of flash storage by data/network operators. Meanwhile, hurdles will prevent new memory supplies from causing a glut in the market, Woo believes. Both companies should report "upbeat" results in the second half of 2014 and in 2015, the analyst forecast. He increased his price target on Micron to $40 from $22 at the time and upgraded the stocks two notches to Buy from Underperform. In a note sent two day's later, Sterne Agee said it expected the results for Micron's May quarter to be strong and predicted that the company's guidance for its August quarter will be stronger. The firm, which expects the company's August quarter results to be boosted by a turnaround in key NAND-DRAM margins, raised its price target on the stock to $38 from $32 and kept a Buy rating on the name. Most recently, RBC Capital said it thinks that Micron benefited from healthy demand trends and gross margin expansion in Q3. The firm raised its price target on the stock to $38 from $34 on June 20 and kept its Outperform rating on the shares. PRICE ACTION: Since the day after last quarter's report, shares of Micron have advanced about 30%. Ahead of tonight's report, Micron was down about 0.5% to $31.69 in afternoon trading.
News For MU;SNDK From The Last 14 Days
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June 25, 2015
16:04 EDTMUMicron Q3 cash flows from operations $1.34B
16:04 EDTMUMicron reports Q3 EPS 54c, consensus 56c
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16:00 EDTMUOptions Update; June 25, 2015
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15:13 EDTMUMicron June weekly 24 straddle priced for 6.2% movement into Q3
15:04 EDTMUNotable companies reporting after market close
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12:54 EDTMU, SNDKEarnings Watch: Micron reports after multiple analysts recommend selling shares
Micron Technology (MU) is expected to report third quarter earnings after the close on Thursday, June 25, with a conference call scheduled for 4:30 pm EDT. Micron manufactures semiconductor devices, principally Dynamic Random Access Memory, or DRAM, NAND Flash and NOR Flash memory. EXPECTATIONS: Analysts are looking for earnings per share of 56c on revenue of $3.9B. The consensus range is 49c-65c for EPS on revenue of $3.73B-$4.03B, according to First Call. On its last earnings conference call, Micron guided for Q3 revenue of $3.85B-$4.05B. In terms of bit growth in Q3, the company said previously that it sees total DRAM up high single digits and Trade NAND down low single digits. In Q3 for ASP, the company forecast total DRAM down high single digits and Trade NAND up mid single digits. LAST QUARTER: On April 1, Micron reported Q2 adjusted EPS of 81c, against a consensus of 73c, on revenue of $4.17B, against a consensus of $4.15B. The company said then that it was allocating less production to its PC segment and shifting to faster growing areas, but also said it foresaw PC DRAM demand to improve in the second half of 2015. PEER: On April 15, SanDisk (SNDK) lowered it FY15 revenue view to $5.4B-$5.7B from $6.5B-$6.8B. At that time, SanDisk CEO Sanjay Mehrotra said the company was "disappointed" with its financial and operational performance and was taking "aggressive measures" to regain the type of execution it has delivered in the past, adding that its top priorities for 2015 are to strengthen its product roadmap and rebuild its momentum. NEWS: On May 5, Micron appointed Ernie Maddock as CFO and vice president, Finance, effective June 1. Maddock joined Micron after having served as EVP and CFO at Riverbed Technology (RVBD). STREET RESEARCH: On June 9, Piper Jaffray analyst Ruben Roy wrote that after conducting checks in Taiwan he expects the prices of PC DRAM to continue to decline. However, mobile and server DRAM pricing remains stable, as demand for those products is rising, the analyst stated. Roy lowered his estimates for Micron and trimmed his price target on the shares to $34 from $35 but kept an Overweight rating on the name. The same day, research firm Drexel Hamilton cut its rating on Micron to Sell from Hold, citing its belief that DRAM price declines are likely to continue. Samsung appears to be willing to accept lower memory prices and mobile DRAM prices are weakening, while PC DRAM prices have remained weak, the firm stated. As a result, Drexel lowered its margins and earnings estimates for Micron and slashed its price target on the stock to $20 from $30. Less than a week later, Morgan Stanley analyst Joseph Moore downgraded Micron to Underweight, the firm's equivalent of a "Sell" rating. Moore said that his checks in Taiwan indicate that the outlook for DRAM is "cautious versus expectations" for the third quarter. Previously, the analyst had expected DRAM to experience a seasonal boost in Q3, but he now expects this lift to be delayed until at least Q4. Moreover, DRAM prices will probably stay weak through Q3 as customers' inventories of DRAM are excessive, while sales of PC DRAM will probably remain weak in Q3 and could stay low in Q4, the analyst stated. Micron could have difficulty improving its earnings in 2016 from current levels, warned the analyst, who set a $21 price target on the shares. The same day, Moore downgraded peer SanDisk to Equal Weight from Overweight and lowered his price target on those shares to $75 from $80. On June 19, Topeka upgraded Micron to Buy from Hold and increased its price target to $34 from $30. The firm came away from an investor site visit incrementally more confident regarding PC demand and related DRAM pricing. Topeka added that it expects investor confidence in Micron's ability to sustain margins though cycles to increase over the next few quarters as Micron executes. Earlier this week, Goldman Sachs analyst Mark Delaney downgraded Micron to Sell from Neutral, saying rising DRAM supply will lower selling prices and contract margins. Delaney expects DRAM prices to drop up to 30% over the next three quarters and cut his price target for Micron shares to $19 from $27. PRICE ACTION: Over the last three months, shares of Micron have fallen over 9%. Ahead of its earnings report, Micron fell fractionally to trade near $24 per share at midday.
12:10 EDTMUMicron June weekly volatility elevated into Q3 and outlook
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11:54 EDTMUMicron technical comments ahead of earnings
The chart is bearish in every time frame. The topping process has been in place since the stock fell from highs late last year. If the news continues to be bearish, notably where outlook is concerned, there could be additional price weakness. Support levels to watch below the current price of $24.11 are at $23.50, $21.92, $20.97, and $20.19. If the news is a bullish surprise, the first important resistance level to watch is at $26.95, the 50-day moving average. This moving average is a proxy for a hand-drawn downtrend resistance line, and a breakout above it would turn the short-term trend to bullish. Next resistance levels to watch would be at $28.11 and $29.09. Approximately 6.5% of the large trading float is short, which could add significant buy-to-cover demand at week's end on a positive surprise.
11:10 EDTMUStocks with call strike movement; MU FCX
Micron (MU) October 28 call option implied volatility increased 3% to 35, Freeport McMoRan (FCX) November 23 call option implied volatility increased 5% to 36 according to IVolatility.
07:44 EDTMUMicron volatility elevated into Q3 and outlook
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June 24, 2015
17:57 EDTMUWall Street applauds Senate giving go-ahead for 'fast track' trade powers
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16:00 EDTMUActionable Options for Wednesday, June, 24
iPath S&P 500 VIX Short-Term Futures up 30c to 17.32 Option volume leaders: AAPL FB NFLX BAC VALE MU BABA WMB T F EBAY FCX TWTR BBRY
09:35 EDTMUActive equity options trading on open
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09:22 EDTMUMicron shares look 'egregiously inexpensive,' says Needham
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07:43 EDTMUMicron June weekly volatility increases into Q3 and outlook
Micron June weekly option implied volatility is at 87, July is at 42, October is at 36; compared to its 52-range of 28 to 61, suggesting large near term price movement into its expected release of Q3 results on June 25.
07:30 EDTMUMicron fundamentals at inflection point, says UBS
UBS believes that Micron Technology fundamentals are at an inflection point and recommends buying the shares at current levels. The firm expects Q3 results and guidance can be better than feared and sees an earnings recovery, mostly influenced by smartphone fundamentals given significantly higher DRAM content. UBS maintained its $35 price target on Micron shares.
06:09 EDTMUOptions expected to be active
Options expected to be active: NFLX SYY MU MON NKE BBBY LEN NBG GREK
June 23, 2015
16:00 EDTMUOptions Update; June 23, 2015
iPath S&P 500 VIX Short-Term Futures down 46c to 17. Option volume leaders: AAPL FB AAPL T BAC MU BTU WMB AMZN TWTR BBRY
11:39 EDTMUStocks with call strike movement; TSLA MU
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09:36 EDTMUActive equity options trading on open
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