Micron Technology Beats on Both Top and Bottom Lines

Micron Technology (Nasdaq: MU  ) reported earnings on June 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 30 (Q3), Micron Technology beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share grew.

Margins increased across the board.

Revenue details
Micron Technology tallied revenue of $2.32 billion. The 26 analysts polled by S&P Capital IQ expected a top line of $2.25 billion on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $2.17 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.09. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. Non-GAAP EPS were $0.09 for Q3 versus -$0.32 per share for the prior-year quarter. GAAP EPS were $0.04 for Q3 versus -$0.32 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.0%, much better than the prior-year quarter. Operating margin was 8.8%, much better than the prior-year quarter. Net margin was 1.9%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.51 billion. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $8.74 billion. The average EPS estimate is -$0.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,138 members out of 1,272 rating the stock outperform, and 134 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 199 give Micron Technology a green thumbs-up, and 19 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 $11.44.

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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. The Motley Fool has no position in any of the stocks mentioned. 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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  • Report this Comment On June 24, 2013, at 7:06 AM, bestwaytoriches wrote:

    Seth not sure if Mu can stay the pace. The resent run up could fall apart. These valuations are in nose bleed territory. The volume has been very unstable and needs a lot of back fill bringing Mu down to $ 11.75. recommend taking the short side for now with any little pop today then covering at $ 12.05. then ride it back up at the end of August.

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