Micron Technology Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

Micron Technology (NAS: MU) reported earnings on June 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 31 (Q3), Micron Technology beat expectations on revenues and missed expectations on earnings per share.

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


Margins dropped across the board.

Revenue details
Micron Technology booked revenue of $2.17 billion. The 27 analysts polled by S&P Capital IQ expected to see a top line of $2.00 billion on the same basis. GAAP reported sales were 1.5% higher than the prior-year quarter's $2.14 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 -$0.32. The 27 earnings estimates compiled by S&P Capital IQ predicted -$0.19 per share. GAAP EPS were -$0.32 for Q3 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 10.8%, 1,150 basis points worse than the prior-year quarter. Operating margin was -8.6%, 1,620 basis points worse than the prior-year quarter. Net margin was -14.7%, 1,820 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.14 billion. On the bottom line, the average EPS estimate is -$0.20.

Next year's average estimate for revenue is $8.42 billion. The average EPS estimate is -$0.97.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,161 members out of 1,300 rating the stock outperform, and 139 members rating it underperform. Among 206 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give Micron Technology a green thumbs-up, and 30 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 $10.45.

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The article Micron Technology Beats on the Top Line originally appeared on Fool.com.

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.

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