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Micron Technology Misses on the Top and Bottom Lines

Micron Technology (Nasdaq: MU  ) reported earnings on Dec. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 1 (Q1), Micron Technology missed slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped, and earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
Micron Technology reported revenue of $2.1 billion. The analyst polled by S&P Capital IQ anticipated sales of $2.1 billion. Sales were 7.2% lower than the prior-year quarter's $2.3 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.19. The 23 earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.19 for Q1 against $0.15 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 14.6%, 870 basis points worse than the prior-year quarter. Operating margin was -3.3%, 2,090 basis points worse than the prior-year quarter. Net margin was -8.9%, 1,580 basis points worse than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $2 billion. On the bottom line, the average EPS estimate is -$0.20.

Next year's average estimate for revenue is $8.5 billion. The average EPS estimate is -$0.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,201 members out of 1,317 rating the stock outperform, and 116 members rating it underperform. Among 235 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give Micron Technology a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Micron Technology is outperform, with an average price target of $8.94.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 03, 2012, at 12:09 PM, zoids wrote:

    MU just poped 9% today and here is the negative article release with big catchy negative headline "missing both top and bottom line." How many shorts you are holding for MU?

    All the numbers are so straight forward where is the real analysis? Why not just read the summary article on the earning report day?

    Failed to mention DRAM price rebound, fail to mention Rambus suitcase win, fail to mention revenue only miss slightly but with the big drop in margin and dram price, it means they are getting higher market share. Fail to mention they have been shifting away from dram business and more focus on nand technology and currently have the best nand technology in the industry with intel.

    I am just speechless here.

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10/26/2016 12:56 PM
MU $17.88 Up +0.34 +1.94%
Micron Technology CAPS Rating: ***