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

Micron Technology beat analyst targets on both the top and bottom lines in the third quarter. Shares still fell 1.5% in after-market trading.

Jun 23, 2014 at 4:59PM
Mu Logo

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.

Anders Bylund owns shares of Micron Technology. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information