Micron Technology | $MU Stock | Shares Drop On Downbeat Earnings Guidance

2993
Micron Technology

Micron Technology Inc (NASDAQ: MU)

 

Micron Technology delivered a solid fiscal fourth-quarter report after markets closed on Thursday. The company swung to a profit of 4.33 billion, as revenue jumped 38% from the same period last year.

However, the company issued a weaker-than-expected fiscal 2019 first quarter earnings outlook, a move that caused its shares to fall during the after-hours session on Thursday. The new guidance appears to be a sign that the semiconductor maker might be hurt by the escalating US-China trade tensions.

MU stock lost as much as 6.67% to trade as $43.00 in extended trading, having closed the regular session at $46.06. The shares have rallied nearly 12% year to date.

MU Earnings & Outlook


Micron said it had net income of $4.33 billion, or $3.56 per share, up from $2.37 billion, or $1.99 per share in the fourth quarter of the previous year. Earnings, adjusted for special items such as amortization and stock-based compensation, were $3.53 per share.

Revenue during the three months ended August 30 totaled to $8.44 billion, compared with $6.14 billion in the year-ago period. Thompson Reuters, based on analyst estimates, was expecting adjusted earnings of $3.34 per share on revenue of $8.25 billion for the quarter.

For the fiscal 2019 first quarter, Micron sees earnings in the range of $2.88 to $3.02 per share and sales of between $7.9 billion and $8.3 billion. Analysts expect the company to come out with adjusted earnings of $3.06 per share and sales of $8.44 billion for the quarter.

Micron Technology CEO Comments

“Micron delivered an exceptional fourth quarter and capped record fiscal year results by becoming the second largest semiconductor company in the U.S. In the fourth quarter, we set revenue records across all our major markets, from automotive and industrial to mobile and cloud datacenters. The secular and diversified growth drivers in our industry combined with accelerating pace of transformation of the new Micron form a tremendous catalyst for us to create enduring value for our customers and investors in 2019 and the years ahead,” commented Sanjay Mehrotra, President and Chief Executive Officer of Micron Technology.

Micron Technology Company Profile

Micron Technology, Inc. engages in the designs and building of semiconductor memory and storage technologies. It operates through the following segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit.

The Compute and Networking Business Unit segment includes memory products sold into compute, networking, graphics, and cloud server markets. The Storage Business Unit segment comprises memory and storage products sold into enterprise, client, cloud, and removable storage.

The Mobile Business Unit segment consists of memory products sold into smart phone, tablet, and other mobile-device markets. The Embedded Business Unit segment involves in the memory products sold into automotive, industrial, connected home, and consumer electronics markets.

The company was founded by Ward D. Parkinson, Joseph L. Parkinson, Dennis Wilson, and Doug Pitman in October 1978 and is headquartered in Boise, ID. – CNN Money

IMAGE CREDIT

NO COMMENTS