Why Micron Earnings Aren’t Enough
Micron Technology released better than expected fiscal fourth-quarter financial results after markets closed Thursday.
Micron Technology Inc. (NASDAQ: MU | MU Price Prediction) released fiscal fourth-quarter financial results after markets closed Thursday. The company said that it had $0.56 in earnings per share (EPS) and $4.87 billion in revenue, compared with consensus estimates that called for $0.49 in EPS and $4.57 billion in revenue. The same period of last year reportedly had $3.53 in EPS and $8.44 billion in revenue.
Gross margin for the most recent quarter was 28.6%, compared with approximately 61.0% in the same period last year. The fiscal third quarter had a gross margin of 38.2%.
Looking ahead to the fiscal first quarter, the company expects to see EPS of $0.46, give or take $0.07, and revenues of $5.0 billion, give or take $200 million. Consensus estimates are calling for $0.48 in EPS and $4.76 billion in revenue for the quarter.
Sanjay Mehrotra, Micron Technology president and CEO, commented:
Micron delivered fourth quarter results ahead of expectations, capping a fiscal 2019 in which we executed well in a challenging environment, significantly improved our competitive position, and returned cash to shareholders through share repurchases. We are encouraged by signs of improving industry demand, but are mindful of continued near-term macroeconomic and trade uncertainties. As markets recover, Micron is well positioned to address the robust secular demand for memory and storage solutions.
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Shares of Micron closed Thursday at $48.60, in a 52-week range of $28.39 to $51.39. The consensus price target is $51.59. Following the announcement, the stock was down over 4% at $46.39 in the after-hours session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
