Q2 Report: Is Micron Slowing Down?

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Micron Technology, Inc. (NASDAQ: MU) released its fiscal second-quarter financial results after the markets closed on Wednesday. The firm said that it had $1.71 in earnings per share (EPS) and $5.84 billion in revenue, which compares with consensus estimates calling for $1.67 in EPS and $5.82 billion in revenue. The same period from last year had $2.82 in EPS and $7.35 billion in revenue.

Gross margin for the quarter was 50.2%, compared with 58.4% in the same period last year. The fiscal first quarter had a gross margin of 59.0%.

On the books, cash and short-term investments totaled $7.53 billion at the end of the quarter, versus $6.80 billion at the end of the previous fiscal year.

Micron did not offer any guidance in the report. However, consensus estimates for the third quarter are calling for $1.23 in EPS and $5.33 billion in revenue.

The firm repurchased an aggregate of 21 million shares of its common stock for $702 million during the quarter in connection with its $10 billion share repurchase authorization.

Sanjay Mehrotra, Micron Technology President and CEO, commented:

Micron continues to execute well across a range of product, operational and financial initiatives against the backdrop of a challenging market environment. These initiatives and our focus on high-value solutions, cost competitiveness and innovation will enable us to emerge even stronger as the market environment improves.

Shares of Micron closed Wednesday at $40.13, within a 52-week range of $28.39 to $64.66. The stock has a consensus analyst price target of $46.04. Following the announcement, the stock was relatively unchanged in the after-hours session.

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