Micron (MU) Beats on Top & Bottom Lines, Shares Up

American memory and storage tech firm Micron MU has released fiscal Q4 2018 (ended August) earnings after Thursday's closing bell, with typically positive results: earnings of $3.53 per share easily beat the Zacks consensus of $3.32, with year-over-year earnings growth up 75%. Quarterly sales posted $8.44 billion, which is not only well above the estimated $8.25 billion but even higher than the top on the previously guided revenue range of $8.4 billion.

Gross margins in the quarter reached 61%, near the top of that guidance range. In terms of earnings results, this marks the 13th straight positive surprise -- you need to go back to fiscal Q3 2015 for the last time Micron missed expectations. After hours, MU shares are trading up 2+%.

However, the stock is still down more than 20% since this past spring, and part of this has to do with NAND and DRAM businesses -- at which Micron excels -- is losing steam. So while Micron itself is bringing in 50% more revenues from the year-ago quarter, investors don't currently have much faith in the company's overall business environment. Prior to its earnings report, Micron carried a Zacks Rank #4 (Sell) with a Zacks Style Score (Value - Growth - Momentum) of A. For more on MU's earnings, click here.

The company's conference call, scheduled to get underway a few minutes from now, will be crucial to the fortunes of this stock going forward. Guidance will play a critical role in where Micron -- an its sub-industries -- can be expected to go from here. Right now, the company estimates $2.88 per share for its November (Q1 2019) quarter, and $8.35 billion on the top line.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research