Today is Wednesday, March 30, 2022.
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Micron Eyes Record Revenue
Shares of Micron Technology (Nasdaq: MU) jumped 3.88% in after-hours trading on Tuesday after the memory and computer data storage producer posted positive financial results.
Financials: Micron posted earnings per share of $2.14 and revenue of $7.79 billion; both were better than expected.
Outlook: The company’s guidance for the current quarter has revenue at $8.7 billion and earnings of $2.33 per share; both were better than expected.
Quote: “With outstanding first half results, Micron is on track to deliver record revenue and robust profitability in fiscal 2022.” - Micron CEO Sanjay Mehrotra.
Flowing: If there was one weak spot for Micron, it was operating cash flow, which was slightly lower than the prior quarter.
Final Thoughts: While Micron has lagged behind other semiconductor stocks, the good news is that the company has a low price-to-earnings ratio, which means it is a value stock.
Notable Earnings Today: BioNTech (Nasdaq: BNTX), UiPath (NYSE: PATH), Five Below (Nasdaq: FIVE), Acutus Medical (Nasdaq: AFIB), Paychex (Nasdaq: PAYX), KemPharm (Nasdaq: KMPH), AerCap Holdings (NYSE: AER), Agile Therapeutics (Nasdaq: AGRX), UpHealth (NYSE: UPH), US Well Services (Nasdaq: USWS), MSC Industrial Direct (NYSE: MSM), iSun (Nasdaq: ISUN), UniFirst (NYSEL UNF), FranklinCovey (NYSE: FC), PolarityTE (Nasdaq: PTE), Core & Main (NYSE: CNM), Logiq (OTCMKTS: LGIQ), Arhaus (Nasdaq: ARHS), Arcadia Biosciences (Nasdaq: RKDA), Consolidated Water (Nasdaq: CWCO), Motorsport Games (Nasdaq: MSGM), VNET Group (Nasdaq: VNET).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), GDP (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
Lululemon Survives Omicron, Supply Chain Challenges
Shares of Lululemon Athletica (Nasdaq: LULU) jumped 7.86% in after-hours trading on Tuesday after the athletic apparel retailer posted mixed financial results.
Financials: Lululemon reported earnings per share of $3.37, which was better than expected. Its revenue of $2.1 billion was slightly below estimates.
Outlook: The company expects revenue to be in the range of $1.525 billion to $1.550 billion and earnings per share to be in the range of $1.38 to $1.43 for the quarter; both were way better than expected.
Buyback: There will also be a $1 billion stock repurchase program, which will further drive the price of the stock up.
Challenges: Despite a challenging macro backdrop, which included both omicron and global supply chain issues, Lululemon shined.
Final Thoughts: It’s been a tough six-month period for Lululemon, which is down about 15% in that time. Hopefully, this good news can help the stock recover.
What is the Bond Market Saying?
Some economists believe that the flat yield curve in today’s bond market is a sign of a potential economic recession.
Definition: A flattening yield curve means there is no discernible change in rates between short-term and long-term bonds. It is a popular economic indicator for investors.
Background: We also saw a flattening yield curve during the onset of the pandemic in 2020, which is when the market sunk.
Big Picture: By its very nature, a flattening yield curve tends to signal inflation, which is where the economy is now.
Final Thoughts: While it is not time to panic, investors should consider what the bond market is saying about the economy in 2022.
Trends to Watch
Pandemic: More contagious Omicron subvariant becomes dominant in the U.S. (Seeking Alpha)
Cyberattack: Hackers hit popular video game, stealing more than $600 million in cryptocurrency (The Washington Post)
Jumping: Why Loopring's Cryptocurrency Is Soaring Today (The Motley Fool)
Danger: US yield curve inverts in possible recession signal (Financial Times)
Halted: China $9 bln IPO plans stalled amid COVID outbreak (Reuters)
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