Micron $MU Stock Up On Beat, Forecasts 20%+ Growth

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MU stock ripped 5% higher on December 20, 2021, after the company reported impressive beats and an even more eye-popping growth forecast.

Micron Technology, Inc. Reports Results for the First Quarter of Fiscal 2022

On December 20, 2021, Micron Technology, Inc. (Nasdaq: MU) announced results for its first quarter of fiscal 2022, which ended Dec. 2, 2021. Micron reported Q1 EPS of $2.16 versus the consensus estimate of $2.11. The company reported Q1 revenue of $7.69B versus the consensus estimate of $7.67B.

Fiscal Q1 2022 highlights

  1. Revenue of $7.69 billion versus $8.27 billion for the prior quarter and $5.77 billion for the same period last year
  2. GAAP net income of $2.31 billion, or $2.04 per diluted share
  3. Non-GAAP net income of $2.47 billion, or $2.16 per diluted share
  4. Operating cash flow of $3.94 billion versus $3.88 billion for the prior quarter and $1.97 billion for the same period last year

“Micron delivered solid fiscal first-quarter results led by strong product portfolio momentum,” said Micron Technology President and CEO Sanjay Mehrotra. “We are now shipping our industry-leading DRAM and NAND technologies across major end markets, and we delivered new solutions to data center, client, mobile, graphics and automotive customers. As powerful secular trends including 5G, AI, and EV adoption fuel demand growth, our technology leadership and world-class execution position us to create significant shareholder value in fiscal 2022 and beyond.”

Micron sees CY21 industry DRAM bit demand growth in low 20% range

Sees CY21 industry DRAM bit demand growth to be in the low 20% range and industry NAND bit demand growth to be in the high 30% range. Sees CY22 industry bit demand growth to be in the mid to high teens for DRAM and approximately 30% for NAND. Sees long-term DRAM bit demand growth CAGR of mid-to-high teens and long-term NAND bit demand growth CAGR of approximately 30%. Sees company’s CY22 bit supply growth for DRAM and NAND is expected to be in line with industry demand. Says planning to deliver record revenue with solid profitability in FY22 with stronger bit shipment growth in the second half of the fiscal year. Sees annual cost-per-bit reductions to be competitive with the industry in FY22 and over the long term. Sees FY22 CAPEX in the range of $11B to $12B. Guidance taken from Q1 earnings presentation slides.

Summit Insights upgrades Micron to Buy, sees DRAM price stabilizing

Summit Insights analyst Kinngai Chan upgraded Micron to Buy from Hold. The analyst contends that the downside risk of Micron’s customers buying ahead of demand is now priced-in into the stock, adding that while there is further risk of contract price declines in Q1 due to weaker seasonal demand, he expects DRAM prices to stabilize through the second half of 2022 as demand for DDR5 ramps up.

📺 VIDEO Micron stock is up following a solid Q1 earnings release

Yahoo Finance notes the forward guidance is what got MU stock moving higher in after-hours trading on December 20, 2021.

Micron stock is up following a solid Q1 earnings release

📈 MU Stock Technical Analysis

Mu Stock

The long-term trend is positive and the short-term trend is neutral. The long-term trend gets the benefit of the doubt for now. MU is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry. MU is part of the Semiconductors & Semiconductor Equipment industry. There are 106 other stocks in this industry, MU did better than 48% of them. MU is currently trading in the middle of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so MU is lagging the market slightly. There is a support zone ranging from 82.02 to 82.02. This zone is formed by a combination of multiple trend lines in multiple time frames. There is a resistance zone ranging from 84.22 to 86.21. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. MU has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. Click here to sign up for email alerts on MU stock.

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