Micron Earnings Show Coronavirus Impact Is Fading

Author:
Publish date:
Video Duration:
1:31

Micron  (MU) - Get Report shares rose considerably, after the company beat earnings and revenue estimates and issued strong — albeit wide-ranging — guidance. 

The stock rose as much as 7% to $45 a share in postmarket trading, after having fallen 1.78% in regular hours. 

Earnings per share came in at 45 cents, beating analyst estimate of 37 cents. Revenue was $4.8 billion, beating Wall Street expectations of $4.69 billion. 

These numbers contracted year-over-year and the rest of 2020 may see the same, but the beat was largely attributable to an abating coronavirus spread in China, which analysts had noted before the earnings print could catalyze and earnings beat. 

Manufacturing is moving back towards full strength, enabling the company to meet demand. Sales in the region are likely to see a rebound by the end of 2020. U.S. sales remain a risk as the virus continues to spread in the country. 

This larger picture gave management enough confidence to be a rare company that is willing to issue third quarter guidance, even through the range of guidance was wide. 

Management is looking for revenue of between $4.6 billion and $5.2 billion, against analysts hope for $4.8 billion in the current quarter. Microns says EPS will be 55 cents, plus or minus 15 cents, while analysts look for 52 cents. 

Some level of certainty is part of the picture now for Micron, while the broader market struggles with certainty. 

The stock came into earnings down more than 30% for the year. 

Catch up on the Latest Videos on TheStreet!