Micron Technology, Inc. (NASDAQ: MU) stock surges, ending weakness

Free $100 Forex No-Deposit Bonus

Micron Technology, Inc. (NASDAQ: MU) stock rose over 7% on March 26th, 2020 (as of 12:56 pm GMT-4; Source: Google finance) after the company posted better than expected results for the second quarter of FY 20. As per the company, MU is resilient to the coronavirus impact on global economic and business activities. The company revealed that it has ample inventory to counter the near-term supply-chain disruption caused by the COVID-19. The company is also witnessing stronger memory chip demand from PC manufacturers and data-center operators. Further, the work-and-learn-from home necessity is also boosting demand for cloud storage. The lockdown has increased the usage of online services globally. Therefore, data-center operators are increasing their cloud-storage capacities to accommodate the need of growing demand for cloud services.

Meanwhile, the global lockdown has reduced the demand for smartphone, automotive and consumer electronics. The company now projects demand from the aforementioned categories to be prior expectations during the second-half of fiscal 2020. The company stated that Chinese smartphone production volumes have started to rebound. Two of its factories in Malaysia, which were completely shut down, have now become operational and running production on a limited basis.

MU in the second quarter of FY 20 has reported the adjusted earnings per share of 45 cents, beating the analysts’ estimates for the adjusted earnings per share by 18.4%, according to the Zacks Consensus Estimate. The company had reported 17.8 percent fall in the adjusted revenue to $4.8 billion in the second quarter of FY 20, beating the analysts’ estimates for revenue of $4.6 billion. DRAM revenues fell 26% to $3.1 billion year over year and 11% sequentially, accounting for 64% of total revenues in the fiscal second quarter. NAND revenues were up 9% on a year-over-year basis and 6% quarter on quarter to $1.5 billion, representing 32% of the total top line. While NAND ASP grew in the upper single-digit’s percentage band, shipment quantities decreased in low-single-digit percent range sequentially. The revenues of the computing and networking business (CNBU) unit fell 17% from the year-ago quarter and 1% sequentially to $2 billion.

For the third quarter 2020, the company expects the revenue to be in the range of $4.6 billion to $5.2 billion, driven by the uncertainties in global demand and supply chain issues because of COVID-19. The company also expects earnings per share to be in the range of 55 cents a share, plus or minus 15 cents. According to Factset, the consensus revenue estimate for Micron’s third quarter was $4.865 billion

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.