Micron’s overall consolidated gross margin was 36% for the first quarter, which was up sequentially from 33% in the fourth quarter of 2014. Investments in capital expenditures were $669 million for the first quarter, and Micron ended the quarter with cash and marketable investments of $5.31 billion. Cash flows from operations were $1.59 billion at the same time as well.
Micron had an outstanding 2014, and it is now a giant in both DRAM and flash memory due to its acquisition of Elpida Memory in July 2013. The stock is currently screened as a value stock rather than massive turnaround and growth stock, as sales growth is slowing handily — after an exponential rise in the past two years. Micron was among the top few companies selected by Credit Suisse for its U.S. Focus List, which the analysts expect to have average gains of 40% to 50%.
CEO Mark Durcan kept it very short when he commented on the earnings:
Micron’s execution and continued favorable market conditions led to a strong first quarter with record revenues and operating cash flows.
24/7 Wall St. decided to add in a few analyst calls that have been recently made about Micron:
- Piper Jaffray maintained a Buy rating and raised its price target to $44 from $43 on December 30.
- Nomura maintained a Buy rating and raised its price target to $45 from $40 on December 16.
- J.P. Morgan maintained an Overweight rating and raised its price target to $41 from $36 on December 1.
The company did not offer guidance, so without any guidance we would consider this after-hours effectively unfinished business. Shares of Micron closed Tuesday down 2.7% at $32.86. Following the earnings announcement, shares were down as far as 6% to $30.98 in the post-market trading session.
The stock has a consensus analyst price target of $42.35 and a 52-week trading range of $20.89 to $36.59. The market cap is over $35 billion. It is also worth noting that at current prices the stock is still trading at less than nine times expected 2015 earnings.
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