Micron Technology Inc. (NASDAQ:MU) stock is trading higher on Wednesday, as investors position themselves ahead of the semiconductor company’s fiscal third-quarter earnings report scheduled after the market close.
According to Benzinga Pro estimates, options markets are bracing for a high-volatility event, pricing in an implied move of approximately 14% in either direction. Nasdaq futures are up 0.43% while S&P 500 futures have gained 0.22%.
Lofty Expectations For Revenue And Earnings
Wall Street maintains high expectations for the memory manufacturer.
Analysts track consensus projections for fiscal third-quarter earnings at $20.76 per share, representing a tenfold increase from the $1.91 per share earned in the prior-year period.
Revenue is projected to reach $35.75 billion, a 284% year-over-year increase compared to the $9.3 billion reported during the same quarter last year.
Historical Context Of Post-Earnings Performance
Despite an eight-quarter streak of exceeding both earnings and revenue estimates, historical data indicates a trend of downward post-earnings sessions.
Freedom Capital Markets Chief Market Strategist Jay Woods noted in a weekly newsletter that Micron shares closed lower after six of its last eight earnings reports, averaging a 6.5% decline. Woods stated, “HBM is the growth story, but guidance is the stock story.”
Rebound In South Korean Memory Supply Chain
The upward price action on Wednesday follows a sharp tech selloff on Tuesday. South Korea’s KOSPI index plummeted 10% on Tuesday as local memory giants Samsung Electronics and SK Hynix each declined over 12%.
Wedbush analyst Dan Ives stated on CNBC’s Closing Bell that the contraction was a “healthy pullback” and a “gut check moment,” adding that demand significantly outpaces supply.
Micron Technology Technical Levels To Watch
MU is still in a steep uptrend on the longer-term chart, sitting about 7.7% above its 20-day SMA ($1003.08) and far above its 50-day SMA ($761.22) and 200-day SMA ($410.85).
From a structure standpoint, the stock’s recent swing low in March followed by a push to a swing high and 52-week high in June fits a classic higher-low, higher-high sequence.
The next question is whether MU can keep building above its short-term trend gauges (like the 20-day EMA at $984.12) without slipping into a deeper mean reversion toward the 50-day area.
MU Stock Price Activity: Micron Technology shares were up 3.81% at $1091.80 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
