Home / Features / Micron Technology (NASDAQ:MU) Taking Out of Box Steps But Facing Lack of Confidence- Cavium (NASDAQ:CAVM), STMicroelectronics (NYSE:STM)

Micron Technology (NASDAQ:MU) Taking Out of Box Steps But Facing Lack of Confidence- Cavium (NASDAQ:CAVM), STMicroelectronics (NYSE:STM)

Micron Technology, Inc. (NASDAQ:MU) [Detail Analytic Report] eased up in early trading session on Monday as competitor chipmaker SK Hynix designated optimistic sales in DRAM market. In its newest earnings release, South Korea’s SK Hynix reported that it expects DRAM (dynamic random-access memory) shipment growth of around 15% in Q2. DRAM chips are used in smartphones, tablets, personal computers and gaming consoles.

President Joon-Ho Kim stated in a conference call with investors that they are anticipating more optimistic demand momentum around second half. Vijay Rakesh of Mizuho Bank also considers things are improving for Micron. In a note to investors, he said “capex trends at Hynix and Samsung point to much more discipline, and a focus on profitability over market share.” Both Hynix and Micron are suppliers to Apple Inc.

Noting a main crunch of analyst research by WSJ, MU under observation of quarterly per share earnings, it has second quarter 2016 trend of $-0.09, while in next quarter estimated EPS trend is $0.02 and for annual basis for 2016 estimated EPS is $0.13. Relatively pool of WSJ analyst issues diverse rating, as for current level it has 19 experts rated as “BUY” security, 2 analyst recommend as “Overweight,” and 10 experts rated as “Hold”.

Cavium, Inc. (NASDAQ:CAVM) [Detail Analytic Report] released that a loss of $3.8M in its first quarter. The chipmaker released that its revenue of $101.9M in period, dropping short of Street estimates. Eight analysts surveyed by Zacks anticipated $102.2M. Cavium shares contrain dropped 12% since beginning of year.

Cavium thinks that presentation of non-GAAP financial measures offers important supplemental information to management and investors regarding financial and business trends relating to Cavium’s financial condition and results of operations. These measures should only be used to assess Cavium’s results of operations in conjunction with corresponding GAAP measures. The reconciliation among GAAP and non-GAAP financial results is provided in the financial statements portion of this release. In the first quarter of 2016, Non-GAAP net income was $14.8 million, or $0.25 per diluted share.

For current month, 0.45 analyst from pool recommended for an “overweight” rating, while 0.33 gave rating of “Buy” and 1.59 analysts suggest to “Hold” and 19 gave preference to “underweight,” according to research rating by WSJ. While alarming thing to be notice is price target, the average pool price target for CAVM has been mentioned as; 3 tends to high price target, medium level touched to 2, and 0 was assigned as lowest share price targets. To accommodate all of these, average analyst price target appeared by 9, where as the current price is 7, as per research conducted by WSJ.

STMicroelectronics NV (NYSE:STM) [Detail Analytic Report] released that financial results for Q1 ended April 2, 2016. STMicroelectronics President and Chief Executive Officer, Carlo Bozotti stated that ST’s results were in line with expectations and improved than normal seasonality, despite a volatile macro-economic scenario and mixed industry dynamics as we entered the first quarter.

Combined R&D and SG&A costs were $571M as compared to $591M in year-before quarter mainly because of favorable currency effects, net of hedging, as well as the savings plan completed in 2015. On a sequential basis, combined R&D and SG&A expenses decreased by $12 million, benefiting from favorable currency effects, net of hedging, and lower calendar days in the first quarter compared to the fourth quarter.

To narrow down focus on firm’s analytic rating, STM receives a wide range of reviews through technical indicators; experts eagerly produce EPS tends for quartile and annual, for current quarter trends were $-0.09 and $0.02 for next quarter. On annual bases, it has $0.13 for FY 2016 Estimate Trends and $0.81 for FY 2017 Estimate Trends. To neat down this understanding, 1.59 analysts rate it as ‘Holding’ security, at the same time as 0.33 suggests for ‘Buy’ as compare to 0.29 analyst suggested in 3 month ago. To lodge it average analyst gave price target to 0.23, whereas current price stands at 0.24.

About Gerard Bergeron

Gerard Bergeron covers Bio-pharmacy or healthcare sector Press Releases news updates. He has extensive three year of experience in content writing as freelance writer. He performs analysis of Healthcare Companies and provides worthy information for investor community. He is an experienced writer with a precise grasp of the English language and a clear, compelling writing style.

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