Micron Technology Goes Red

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

The 10-second takeaway
For the quarter ended March 1 (Q2), Micron Technology beat expectations on revenues and missed expectations on earnings per share.

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


Margins dropped across the board.

Revenue details
Micron Technology chalked up revenue of $2.07 billion. The 24 analysts polled by S&P Capital IQ expected to see a top line of $2.01 billion on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $2.26 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.23. The 26 earnings estimates compiled by S&P Capital IQ anticipated -$0.20 per share. GAAP EPS were -$0.23 for Q2 compared to $0.07 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.0%, 630 basis points worse than the prior-year quarter. Operating margin was -7.2%, 1,370 basis points worse than the prior-year quarter. Net margin was -10.8%, 1,400 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.13 billion. On the bottom line, the average EPS estimate is -$0.13.

Next year's average estimate for revenue is $8.57 billion. The average EPS estimate is -$0.38.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,161 members rating the stock outperform and 129 members rating it underperform. Among 230 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 205 give Micron Technology a green thumbs-up, and 25 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 $9.98.

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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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