Why Micron and Nike can both beat the Street

After Thursday’s closing bell, two highly anticipated earnings reports will be released, and expectations are very different.

Semiconductor company, Micron (MU), currently has an earnings per share (EPS) expectation of $0.67 from the Estimize community, much higher than the $0.58 projected by Wall Street, but still indicating a 14% decline YoY. Revenue expectations from Estimize are also higher, but less so, at $3.997B vs. $3.949B.

The struggles for chipmakers are not new, with the strength of the U.S. dollar and the freefall of the PC market impacting the industry for the last few quarters. Competitors such as Intel (INTC) and SanDisk (SNDK) posted big misses in Q1, while Micron was able to eke out a slight beat on the bottom-line while still missing on the top-line.

The stock has recently experienced a sudden decline after Morgan Stanley (MS) downgraded the company and expressed concerns with the expected growth rate, shares falling to a 14 month low and now trading around $24.50.

Get the Latest Market Data and News with the Yahoo Finance App

On the other hand, Nike (NKE) is expected to see EPS grow 14% during its FQ4’15. The Estimize consensus is calling for EPS of $0.88 as compared to the Street’s expectation of $0.84. Revenues of $7.82B also above the Street’s estimate of $7.68B. The company has been benefiting lately from the popularity of basketball shoes as well as the athletic wear fashion trend, although the pace of future orders growth has come into question.

Another topic CEO Mark Parker will have to address on Thursday is Nike’s place in the wearable technology space, and how the company plans on partnering with Apple (AAPL) on software for the new Apple Watch, something they have been vague about.

Shares of the stock are trading near an all-time high, and received a boost two weeks ago after Nike announced it’s eight-year contract to produce uniforms for the NBA, a contract valued around $1B. More importantly than snatching this contract from Adidas (ADDYY) which held it since 2006, is the fact that main competitor Under Armour (UA) didn’t win it.

More from Yahoo Finance

Home builders ripe for deals: Strategist

Why a rate hike is a good sign for stocks: CIO

For investors tired of Fed noise and Greece fear, Japan beckons