Benzinga | Jun 29, 2021 10:23AM EDT

Earnings Outlook For Micron Technology

On Wednesday, June 30, Micron Technology (NASDAQ:MU) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Micron Technology earnings of $1.71 per share. Revenue will likely be around $7.23 billion, according to the consensus estimate. In the same quarter last year, Micron Technology reported EPS of $0.82 on revenue of $5.44 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 108.54%. Revenue would be up 32.95% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q2 2021 Q1 2021 Q4 2020 Q3 2020EPS Estimate 0.95 0.71 0.99 0.77EPS Actual 0.98 0.78 1.08 0.82Revenue Estimate 6.21 B 5.73 B 5.89 B 5.31 BRevenue Actual 6.24 B 5.77 B 6.06 B 5.44 B

Stock Performance

Shares of Micron Technology were trading at $83.38 as of June 28. Over the last 52-week period, shares are up 67.36%. Given that these returns are generally positive, long-term shareholders should be content 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.