Micron Technology, Inc., Beats Q3 Estimates Thanks to Solid Memory Pricing

Source: Micron Technology.

Micron Technology (NASDAQ: MU  ) just reported results for the third quarter of fiscal year 2014, showing that sales increased 72% year-over-year and decreased 3% from second-quarter levels, landing at $4.0 billion. Year-ago results do not include the operations of Elpida, which Micron acquired in July, 2013. Analysts were looking for $3.9 billion in third-quarter sales.

On the bottom line, Micron's non-GAAP earnings passed Wall Street's $0.70 target to stop at $0.79 per share. A year ago, earnings were $0.04 per share. Last quarter, they were $0.85 per share.

Gross margins held steady quarter-over-quarter at 34%, as slight average sale price declines were matched by lower manufacturing costs. DRAM prices fell 2% in the quarter while NAND prices held firm.

Operating cash flows were $1.5 billion and capital expenses stopped at $580 million, yielding $884 million in free cash flows. A year ago, free cash flows were reported at $389 million.

Micron's balance sheet carries $5.6 billion in total debt, a 55% increase from year-ago levels. At the same time, cash equivalents increased 67% to $4.3 billion.

Share prices dropped 1.2% in after-hours trading. Before this market reaction to the financial release, Micron shares had risen approximately 125% over the last year and 44% year-to-date.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3005022, ~/Articles/ArticleHandler.aspx, 11/25/2014 11:21:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement