Micron (MU) Stock Earnings: What You Need to Know

Given the high implied volatility and expectations of a big move, investors should not ignore this stock

• Micron is scheduled to report its quarterly earnings after the market closes on Wednesday.
• Before this week’s announcement, Micron had beaten earnings expectations for four straight quarters.
• Estimated earnings per share are more than twice as high as in the previous quarter.
• Micron is expected to report earnings at $1.11 per share on revenue of $7.64 billion.

Micron Earnings Preview

Micron Technology (MU) is set to report quarterly earnings on Wednesday. The U.S. tech company has burst onto the scene over the past few years alongside the AI ​​and technology boom we’ve seen in the broader market, and MU stock has been a direct beneficiary.

Micron started the year at $84 and is currently trading around $93.50, up over 11% year-to-date. But that doesn’t tell the whole story, as the stock recently peaked at $157.53 before the recent sell-off in the summer. With so much volatility surrounding the stock this year, it’s no surprise that volatility is high ahead of the earnings announcement.

The very positive sentiment can be seen in Micron’s previous earnings call: “Looking ahead to 2025, demand for AI PCs and smartphones and the continued growth of AI in data centers create a favorable environment that gives us confidence that we can deliver significant record revenue in fiscal year 2025, with significantly increased profitability supported by the ongoing shift in our portfolio to higher margin products.”

As you might guess, AI is a key driver of Micron’s success, and this trend is clearly just getting started.

Looking at the implied volatility for this week’s options expiration, which includes the earnings call, we can see that the market is pricing in a +/- $8.63 move in the stock. That’s a large expected move of just over 9% of the stock’s notional value — most earnings reports are in the 5%-10% range.

Looking ahead, we see a +/-$20.29 move in the stock price through the end of the January 2025 options expiration cycle. That means this week accounts for almost half of the expected move through the end of the year, which is certainly noteworthy.

Bullish on Micron stock earnings

Investors who are optimistic about Micron’s earnings expect better results in terms of earnings per share (EPS) and revenue, as well as positive sentiment going forward.

Given that MU beat earnings estimates last quarter and the stock continues to sell off, that sentiment is solidifying. MU earnings could be either boom or bust this week, which could be why the implied volatility is so high.

However, if Micron manages to beat estimates and present a strong picture for the rest of the year, we could see the stock open higher on Thursday.

Bearish sentiment on Micron stocks amid earnings

Bearish MU earnings traders are certainly expecting a weak earnings report. Consider that MU shares were sold off last quarter after the earnings beat, and it seems unlikely that the shares will rally after the earnings miss.

Any slowdown or lowering of year-end estimates could result in a drop in stock prices on Thursday.

Whichever way you look at it, MU’s earnings this week cannot be ignored given such high implied volatility and expected share price movements. Join Live Options Trading Concepts on Wednesday at 11:00 AM Central Time to take a closer look at options strategies before they’re announced!

Mike Butler, tastylive Director of Market Intelligence, has been in the markets and trading for a decade. Appears in Live Options Trading Conceptsairs Monday through Friday. @tradermikeyb

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