Micron  (MU) – Get Report shares fell after beating revenue and earnings estimates and saying the near-term outlook is solid, though giving weak financial guidance.

The stock fell 1.6 % to $49 a share in postmarket trading.

Driving the revenue and earnings beat was strength in both NAND and DRAM shipments, the company said. Some of the DRAM strength was seen in gaming sales, which is receiving a 2020 stay-at-home tailwind.

But it was the outlook that investors were discouraged by.

Management did say it expects strength in high-growth areas going forward. “We look forward to improving market conditions throughout calendar 2021, driven by 5G, cloud and automotive growth, and we are excited by the continued momentum in our product portfolio,” said CEO Sanjay Mehrotra. This paints a positive picture of Micron’s direction for the next year, but for the current quarter, Micron guided for revenue at a midrange of $5.2 billion, narrowly missing estimates of $5.27 billion. Adjusted EPS is expected at roughly 47 cents, against estimates of 66 cents.

Here were the reported quarter results against Wall Street expectations:

  • Revenue: $6.06B v. $5.89B (actual: +24% year-over-year)
  • Operating Margin: 21% v. 20.5% (Last year: 14%)
  • Adjusted Earnings Per Share: $1.08 v. 98 cents (+92%)

The stock entered earnings up more than 11% in the past month and trading at 15 times forward earnings, a rich multiple compared to its average of 11 times in the past five years. 

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Here are five things you must know for Tuesday, Sept. 29:



a close up of a sign: Coronavirus, Covid-19 Aid, Microsoft, Micron - 5 Things You Must Know Tuesday


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Coronavirus, Covid-19 Aid, Microsoft, Micron – 5 Things You Must Know Tuesday

1. — Stock Futures Pull Back

Stock futures declined modestly Tuesday as the global death toll from the coronavirus pandemic passed 1 million and investors assessed a fresh $2.2 trillion aid proposal from House Democrats.

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Wall Street also was looking ahead to the first presidential debate Tuesday evening between U.S. President Donald Trump and Democratic candidate Joe Biden.

Contracts linked to the Dow Jones Industrial Average fell 27 points, S&P 500 futures were down 3 points and Nasdaq futures declined 29 points.

Stocks finished sharply higher Monday as equities came off a four-week losing streak. The Dow gained 410 points, or 1.51%, to close at 27,584, the S&P 500 rose 1.61% and the Nasdaq rose 1.87%.

The scaled back $2.2 trillion coronavirus relief package released by House Democrats Monday evening would restore $600 weekly jobless benefits. The proposal is less than the $3.4 billion bill passed by the House in May, but remains above what Senate Republicans have said they would accept.

A vote on the legislation could come later this week. House Speaker Nancy Pelosi spoke with Treasury Secretary Steven Mnuchin Monday evening and the two agreed to talk again Tuesday. Negotiations over Covid-19 relief have been at a stalemate since early August.

“While investors may be feeling optimistic about a stimulus, I think there are still some significant risks ahead the market today does not seem to be reflecting,” said Ken Moraif, senior financial advisor at Retirement Planners of America. “We have what I believe is complete uncertainty about the impact of the upcoming election, the future path of Covid-19, and worries about rising infections in the winter, which could all