2 Reasons to Buy Micron Technology Stock
Micron Technology (NASDAQ: MU) has begun its latest fiscal year on a disastrous note. Its top and bottom lines plunged big time thanks to the clobbering memory prices have taken in recent quarters. What's more, the memory specialist's guidance didn't pass muster.
Micron's revenue fell to $5.14 billion in the first quarter of fiscal 2020 from $7.91 billion a year ago, a massive decline of 35%. Adjusted earnings fell to just $548 million from $3.5 billion a year ago. The chipmaker expects adjusted earnings of $0.35 per share this quarter on revenue of $4.5 billion-$4.8 billion.
That compares unfavorably to the year-ago period's revenue of $5.84 billion. However, the annual revenue decline would be substantially smaller this time at 20%, considering the mid-point of the guidance range. Though that's a significant drop, Micron investors are not complaining and seem to be buying more stock.
Source Fool.com
