Micron Technology, Inc., Beats Q3 Estimates Thanks to Solid Memory Pricing
Micron Technology just reported results for the third quarter of fiscal year 2014, showing that sales increased 72% year-over-year and decreased 3% from second-quarter levels, landing at $4.0 billion. Year-ago results do not include the operations of Elpida, which Micron acquired in July, 2013. Analysts were looking for $3.9 billion in third-quarter sales.
On the bottom line, Micron's non-GAAP earnings passed Wall Street's $0.70 target to stop at $0.79 per share. A year ago, earnings were $0.04 per share. Last quarter, they were $0.85 per share.
Gross margins held steady quarter-over-quarter at 34%, as slight average sale price declines were matched by lower manufacturing costs. DRAM prices fell 2% in the quarter while NAND prices held firm.
Operating cash flows were $1.5 billion and capital expenses stopped at $580 million, yielding $884 million in free cash flows. A year ago, free cash flows were reported at $389 million.
Micron's balance sheet carries $5.6 billion in total debt, a 55% increase from year-ago levels. At the same time, cash equivalents increased 67% to $4.3 billion.
Share prices dropped 1.2% in after-hours trading. Before this market reaction to the financial release, Micron shares had risen approximately 125% over the last year and 44% year-to-date.
The article Micron Technology, Inc., Beats Q3 Estimates Thanks to Solid Memory Pricing originally appeared on Fool.com.Anders Bylund owns shares of Micron Technology. The Motley Fool has no position in any of the stocks mentioned. 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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