Micron Technology MU releases its next round of earnings this Wednesday, March 31. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Micron Technology EPS is expected to be around $0.94, according to sell-side analysts. Sales will likely be near $6.20 billion. In the same quarter last year, Micron Technology reported EPS of $0.45 on revenue of $4.80 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
The analyst consensus estimate would represent a 108.89% increase in the company's earnings. Revenue would be have grown 29.25% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.71 | 0.99 | 0.77 | 0.37 |
| EPS Actual | 0.78 | 1.08 | 0.82 | 0.45 |
| Revenue Estimate | 5.73 B | 5.89 B | 5.31 B | 4.69 B |
| Revenue Actual | 5.77 B | 6.06 B | 5.44 B | 4.80 B |
Stock Performance
Shares of Micron Technology were trading at $86.59 as of March 29. Over the last 52-week period, shares are up 115.24%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Micron Technology is scheduled to hold the call at 16:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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