Micron Technology Inc.
) is set to report second-quarter fiscal 2014 results on Apr 3,
2014. Last quarter, the company recorded 79.07% positive
surprise. The company has delivered positive earnings surprises
in two of the last four quarters with an average beat of 20.93%.
Let's see how things are shaping up for this announcement.
Factors this Past Quarter
Micron is benefiting from the growing demand for SSD products
and has made significant investments to launch innovative SSD
products to meet pent up demand.
Moreover, Micron has been constantly innovating in memory
technologies, spanning DRAM, NAND and NOR Flash memory solutions,
which are being widely used in the latest mobile computing
devices as well as in consumer, networking and embedded
Additionally, we believe that the acquisitions of Rexchip and
Elpida will help boost its share in the memory market. The
acquisition of Elpida also brought
) onto the customer roster, which is a positive for future
However, competition from the likes of
), SK Hynix and Fusion-io remain concerns.
Our proven model does not conclusively show that Micron is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Zacks ESP stands at -8.33%. The Most Accurate estimate
stands at 55 cents while the Zacks Consensus Estimate stands at
Micron's Zacks Rank #3 (Hold) when combined with a -8.33% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing a negative estimate revisions momentum.
Another company that you may want to consider as our model
shows that it has the right combination of elements to post an
earnings beat is:
), Earnings ESP of +25.0 % and a Zacks Rank #3.
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