Wall Street’s Week Ahead: Micron Technology, Inc. (MU), Nike Inc (NKE), CalAmp Corp. (CAMP)


It’s the final stretch before the holidays. Here’s what to watch for in the following companies posting earnings this week: Micron Technology, Inc. (NASDAQ:MU), Nike Inc (NYSE:NKE), and CalAmp Corp. (NASDAQ:CAMP):

 

Micron Technology, Inc. is set to release its Q1/2016 earnings on Tuesday after market close. For this quarter, analysts expect non-GAAP revenues of $3.46 billion, compared to last quarter’s revenues of $3.99 billion, and non-GAAP earnings of $0.32 per share, compared to last quarter’s non-GAAP earnings of $0.37 per share. This past year, the stock has dropped nearly 50% mainly due to weak demand for its own DRAM memory chips. Other sources of weaknesses include a decline in PC sales, currency headwinds, and the financial effects of acquisitions.

Despite these hurdles, the company believes its investment into mobile and cloud technologies will signal growth in the upcoming quarters. Analysts are bullish on MU going forward and anticipate a positive earnings report. Analyst Blayne Curtis of Barclay’s cites DRAM pricing as the company’s main struggle this past year. However, he remains positive due to “the overall maturation of the memory industry (still making money at the bottom), MU’s improving relative positioning (ramp of 20nm DRAM and 3D NAND), and attractive value (just 7x our new CY17 EPS).” Similarly, analyst Joseph Moore of Morgan Stanley recently upgraded the stock to Overweight with a price target of $18. Although not completely out of the water, he is hopeful about the future of the company. He stated, “We remain cautious on near-term fundamentals, but think sentiment and valuation are near the bottom, and see 30 percent upside as fundamentals stabilize in 2h16.”

According to TipRanks’ statistics, out of 20 analysts who rated MU in the last 3 months, 16 gave a Buy rating, 2 gave a Sell rating, and 2 remain on the sidelines. The average 12-month price target for the stock is $22.35, marking a 55% upside from where shares last closed.

MU Consensus

 

Nike Inc is set to release its Q2/2016 earnings report on Tuesday after market close. Analysts expect the company to post revenues of $7.81 billion and earnings of $0.85 per share, compared to last quarter’s revenues of $8.4 billion and diluted earnings of $1.34 per share. For the past quarter, the company faced challenges such as the appreciation of the dollar, which negatively impacted its international sales. Another challenge was this year’s unseasonably warm weather, which resulted in excess inventory in major Nike retailers. Analysts believe this will lead to higher discounts, impacting sales. However, it was not all bad for Nike this past quarter. The company expanded its North American sales and will continue to do so. Similarly, the company planned to grow its direct-to-consumer sales in the next 5 years. Other highlights from the past quarter include Chinese growth and event sales such as Black Friday and Singles day, potentially increasing sales.

Analyst Erinn Murphy of Piper Jaffray weighed in on the sporting goods giant ahead of its earnings release, maintaining her overweight rating and $140 price target. She anticipates a favorable earnings per share and growth in the company’s Western European market. She states, “We believe EPS can beat our estimate, despite the overall challenging retail environment tied to the ongoing traction of product and outsized international growth. We are looking for EPS of $0.87 (versus the Street at $0.86)…We would anticipate Western Europe to be a particular point of strength in the report and believe trends domestically have held up well. On the [earnings] call, we will be listening for any updates on domestic levels of inventory where we believe the company worked through pockets of excessive footwear inventory during the quarter.”

According to TipRanks’ statistics, out of the 19 analysts who rated NKE in the last 3 months, 18 gave a Buy rating while 1 remains on the sidelines. The average 12-month price target for the stock is $140.78, marking a 9% upside from where shares last closed.

NKE Consensus

 

CalAmp Corp. will release its Q3/2016 earnings on December 22 after market close. For the upcoming report, analysts expect revenues of $73.80 million and earnings of $0.29 per share, compared to last quarter’s revenue of $69.8 million and earnings of $0.26 per share. This quarter, the telecommunications company invested in SmartDriverClub, a telematics company which connects customers to insurance and repair services. Related, the company acquired LoJack Corporation, a company that provides vehicle theft recovery systems.

According to TipRanks’ statistics, out of the 3 analysts who rated CAMP in the last 3 months, all 3 gave a Buy rating. The average 12-month price target for the stock is $26.00, marking a 37% upside from where shares last closed.

CAMP consensus

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts