Micron Technology, Inc. (NASDAQ: MU)
Tech investors like myself have been watching Micron Technologies closely as they anticipated the earnings report release yesterday. Well, the earnings report was a hit and the stock is up. Here’s what we learned from the company’s second fiscal quarter earnings report, how the market reacted to the news, and what we can expect to see moving forward from the memory chip maker.
Micron Technology Earnings Report
As mentioned above, the Micron Technology earnings report was a hit. Not only did the company meet expectations, they blew them away! Here are the key points from the report…
- Earnings Per Share – In the second fiscal quarter of 2015, Micron Technology generated earnings in the amount of $0.78 per share; smashing analyst expectations of $0.73 per share.
- Revenue Growth – Year over year, revenue grew by 1.5%; clocking in at $4.17 billion. Analysts expected revenue to come in at $4.15 billion.
There We A Couple Of Issues With The MU Report
In the quarter, revenue was down by 9% compared to the quarter before. The company stated that the fall is primarily the result of DRAM unit sale declines and selling price declines for both DRAM and NAND memory units. These issues lead to a gross margin decline to 34%; a number that clocked in at 36% last quarter.
How The Market Reacted To The Report
After hours traders had a ball with the positive news last night; pushing the stock to highs. However, in morning trading today, it seems as though MU has leveled off a bit. Currently (12:33), the stock is trading at $27.21 per share after a gain of 0.29% so far today.
Where MU Stock Will Go Next
While the earnings report beat was positive, there are a couple of major concerns as mentioned above. With declines in sales and price declines in products, the outlook declines as well in my opinion. While I still see short term gains in the future for this one on the positive earnings; I am a bit concerned for the long run.
What Do You Think?
Where do you think MU is headed? Let us know in the comments below!