Micron Posts Q2 Bottom Line Beat

Micron Technology, Inc. (NASDAQ: MU) reported its fiscal second quarter financial results after the markets closed on Wednesday. The company had a net loss of $0.05 per share on $2.93 billion in revenue compared to consensus estimates from Thomson Reuters that called for a net loss of $0.08 per share on $3.05 billion in revenue. The same period from last year had $0.81 in earnings per share (EPS) on $4.17 billion in revenue.

In the fiscal second quarter, revenues were lower compared to last year primarily due to a rough 10% declines in both DRAM average selling prices and sales volume. Non-Volatile trade revenues in this quarter declined 6% compared to the same period last year as a result of a 15% decline in average selling prices partially offset by an increase in sales volume.

During this quarter cash flows from operations were $763 million. On the books, the company has cash and short-term investments totaling $4.04 billion at the end of the quarter versus $3.64 at the end of the fiscal first quarter.

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Mark Durcan, CEO of Micron, commented on earnings:

Although we continue to navigate challenging market conditions, we are on track with deploying our advanced DRAM and NAND technologies and improving our cost structure. As a result, we expect to significantly improve our competitive position as we move through the second half of 2016 and beyond.

Shares of Micron closed Wednesday up 0.3% at $10.48, with a consensus analyst price target of $15.46 and a 52-week trading range of $9.31 to $29.78. Following the release of the earnings report, the stock was initially up 3.8% at $10.88 in the after-hours trading session.