After market close today, MU will be reporting Q3 results. The expected consensus is 0.16 compared to the year ago Q3 result of 0.92. This past Q2 MU earned 0.07.
As shown in the recent posts of Dividends and Book Values, MU is presently trading at close to TBV. At the moment, MU is trading at 8.20, up 0.03 from yesterdays close.
The chart shows the recent very volatile nature of MU prices and earnings. In this chart, MU price has always been leading the actual earnings by many months. In Nov 08, MU was trading around $2 a share when it hit bottom and reversed. Earnings however, kept going down for the next 2 quarters while MU price continued its nice uptrend.
Earnings began their upward march in 3Q09 and continued upward for the next 5 quarters to 3Q10 when MU reported earnings of 0.92, beating the consensus estimate by 0.49. Obviously a "blowout" quarter, but no matter, by that time price had reversed from $11 a share and was on its way to $6+ a share.
Then while earnings were descending from 0.32 to 0.07, price was climbing from $6+ to $12, essentially a 2 bagger. Now the price has reversed again and is down to the $8+ range waiting for the earnings report today which is supposed to be 0.16.
I always like to see what happens to the stock price after earnings announcement. Up, down, or sideways we won't know for about an hour or so. Incidentally, from being at 8.20 when I wrote the 2nd paragraph, MU is presently at 8.29.
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