Why Micron Earnings Were a Smash
DRAM maker Micron reported fiscal third-quarter earnings per share of $0.82and $5.44 billion in revenue. The consensus estimates called for $0.77 in per-share profit and $5.31 billion in revenue.
Micron Technology Inc. (NASDAQ: MU | MU Price Prediction) reported fiscal third-quarter financial results after markets closed on Monday. The company posted $0.82 in earnings per share (EPS) and $5.44 billion in revenue, which compares with consensus estimates calling for $0.77 in EPS and $5.31 billion in revenue. The same period of last year reportedly had $1.05 in EPS and $4.79 billion in revenue.
During the quarter, operating cash flow topped $2.02 billion, compared with $2.00 billion in the prior quarter and $2.71 billion for the same period last year.
Gross margin came in at 33.2%, an increase from 29.1% sequentially. However, this fell short of the gross margin in the fiscal third quarter from last year which was 39.3%.
Investments in capital expenditures, net were $1.92 billion for the third quarter, which resulted in adjusted free cash flows of $101 million.
On the books, cash, cash equivalents, and short-term investments totaled $8.66 billion at the end of the quarter, versus $7.96 billion at the end of the previous fiscal year.
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Looking ahead to the fiscal fourth quarter, Micron expects to see EPS in the range of $0.95 to $1.15 and revenue between $5.75 billion and $6.25 billion. Consensus estimates call for $0.81 in EPS and $5.47 billion in revenue.
Sanjay Mehrotra, Micron president and CEO, commented: “We are ramping the industry’s most advanced DRAM technology into production and have delivered more than 75% of our NAND volume as high-value solutions, supported by record SSD revenue in the quarter. Our portfolio momentum positions us exceedingly well to leverage the long-term growth across our end markets.”
Micron stock closed Monday at $49.15, in a 52-week range of $31.13 to $61.19. The consensus price target is $62.46. Following the announcement, the stock was up about 6% at $52.20 in the after-hours session Monday.
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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.
