2018-09-20 12:41:11 | Fly Intel: What to watch for in Micron's earnings reportMicron (MU) is scheduled to report results of its fiscal fourth quarter after the market close on September 20, with a conference call scheduled for 4:30 pm ET. What to watch for: 1. EPS, REVENUE CONSENSUS HIGHER: Along with its last report, Micron guided for Q4 adjusted earnings per share of $3.30, plus or minus 7c, on adjusted revenue of $8B-$8.4B. At the time, analysts were expecting the company to reported Q4 EPS of $3.21 on revenue of $8.07B, but those figures have since risen to $3.34 and $8.25B, respectively. 2. DRAM, NAND IN Q3: On its third quarter conference call, Micron said that DRAM made up 71% of its total revenue in Q3, while NAND made up about 25%. The company added that it achieved 64L NAND production output crossover in Q3 and expects to have 96L NAND production shipments in the second half of the year. In addition, Micron said at the time it was seeing "good progress" on 4th generation NAND development and was on track to achieve 1Xnm DRAM production output crossover in the second half of the year. 3. CHINESE COURT INJUNCTION: On July 3, United Microelectronics (UMC) said that the Fuzhou Intermediate People's Court of the People's Republic of China had issued a preliminary injunction against Micron, enjoining Micron from offering to sell, and selling in the PRC 26 DRAM and NAND-related items, including certain solid-state hard drives and memory sticks in China. Along with the ruling, Micron's products were facing injunction for violating UMC's patent rights in a court verdict that applies to all of mainland China, UMC said. At the time, Micron told Bloomberg that it had not yet been served with an injunction notice in China. Two days later, however, Micron said that the Fuzhou Intermediate People's Court notified two Chinese subsidiaries of Micron that it had granted a preliminary injunction against those entities in patent infringement cases filed by United Microelectronics Corporation and Fujian Jinhua Integrated Circuit. 4. VIRGINIA INVESTMENT: On August 29, Micron announced plans to invest $3B by 2030 to increase memory production at its plant in Manassas, Virginia. The company said at the time that the investment would create 1,100 new jobs roughly over the next decade. The expansion will position the Manassas site to support Micron's leadership in the rapidly growing market for high quality, high reliability memory products, Micron said. 5. COWEN CUTS PRICE TARGET: Earlier this week, Cowen analyst Karl Ackerman cut his price target on Micron to $62 from $72 on expectations that the company will guide lower for the first time in eight quarters, though he believes that could already be priced into the shares. The analyst noted that investor sentiment is "dreadful" heading into the report and he sees incremental risk in the second half of the year. | |
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