Micron: When The Dust SettlesNovember 22, 2018
Since the company issued downside guidance for the current quarter (November 2018 period) a few months ago, analyst estimates have been trending lower as seen in the table below.
Finance analyst estimates page)
The one other major item I’m curious to hear about next month is how the company’s buyback program is doing.
If you remember, it was about six months ago that the board of directors authorized a $10 billion share repurchase plan, as part of a plan to return at least 50% of free cash flow to investors starting in the current fiscal year.
( Source: Micron 10-K filings, seen here )
Now the accelerated plan will be impacted by the recent fall in the stock price, but you have to remember that on August 31st, Micron shares closed at $52.52.
I want to know how much management threw at the buyback during the rest of the quarter, because you don’t want too much of that $10 billion being used at prices well above where we are now.
While estimates have come down, they may not fully reflect the most recent drops in pricing, meaning another guide down from the company at next month’s report is possible.
I think Micron may be a good name to own once the dust settles, but we may need another quarter or two to reach that point.
Author’s additional disclosure: Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article.
Natural mineral dust affects the climate, as well as fertilising aquatic and terrestrial ecosystems. Studies have shown that the dust is rich in phosphorus, which is the main source of nutrients for the Amazon. It also contains potassium and calcium. But to understand its full impact we also need to know the level of iron oxide minerals – and iron – within it.