Why Micron Earnings Aren't Enough
Micron Technology Inc. (NASDAQ: MU) 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.
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.