Micron Technology Misses on the Top and Bottom Lines

Before you go, we thought you'd like these...
Before you go close icon

Micron Technology (NAS: MU) reported earnings on Dec. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 1 (Q1), Micron Technology missed slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped, and earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
Micron Technology reported revenue of $2.1 billion. The analyst polled by S&P Capital IQ anticipated sales of $2.1 billion. Sales were 7.2% lower than the prior-year quarter's $2.3 billion.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.19. The 23 earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.19 for Q1 against $0.15 per share for the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 14.6%, 870 basis points worse than the prior-year quarter. Operating margin was -3.3%, 2,090 basis points worse than the prior-year quarter. Net margin was -8.9%, 1,580 basis points worse than the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $2 billion. On the bottom line, the average EPS estimate is -$0.20.

Next year's average estimate for revenue is $8.5 billion. The average EPS estimate is -$0.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,201 members out of 1,317 rating the stock outperform, and 116 members rating it underperform. Among 235 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give Micron Technology a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Micron Technology is outperform, with an average price target of $8.94.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners