Micron pops on non-GAAP earnings report gimmickMicron has been looking bearish in what appeared to be an emerging downward channel. However, after hours today it popped two and a half dollars per share on the basis of a supposed earnings beat. News outlets are reporting that earnings "crushed" estimates. The problem is that the analyst estimates are for GAAP earnings, and Micron's GAAP earnings missed by several cents per share. By disclosing non-GAAP earnings, Micron used a common gimmick to appear to have beaten estimates that doesn't reflect actual strength in the company's fundamentals. Whether investors will notice this is another matter, however. The stock may stay up tomorrow regardless. But I personally wouldn't invest in it.
To Micron's credit, it did slightly beat estimates of GAAP revenue even though it missed on earnings.
