Why Micron Earnings Were a Smash

By Chris Lange Published Jun 29, 4:15PM EDT

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Why Micron Earnings Were a Smash — © Wikimedia Commons

Micron Technology Inc. (NASDAQ: MU | MU Price Prediction) reported fiscal third-quarter financial results after markets closed on Monday. The company posted $0.82 in earnings per share (EPS) and $5.44 billion in revenue, which compares with consensus estimates calling for $0.77 in EPS and $5.31 billion in revenue. The same period of last year reportedly had $1.05 in EPS and $4.79 billion in revenue.

During the quarter, operating cash flow topped $2.02 billion, compared with $2.00 billion in the prior quarter and $2.71 billion for the same period last year.

Gross margin came in at 33.2%, an increase from 29.1% sequentially. However, this fell short of the gross margin in the fiscal third quarter from last year which was 39.3%.

Investments in capital expenditures, net were $1.92 billion for the third quarter, which resulted in adjusted free cash flows of $101 million.

On the books, cash, cash equivalents, and short-term investments totaled $8.66 billion at the end of the quarter, versus $7.96 billion at the end of the previous fiscal year.

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Looking ahead to the fiscal fourth quarter, Micron expects to see EPS in the range of $0.95 to $1.15 and revenue between $5.75 billion and $6.25 billion. Consensus estimates call for $0.81 in EPS and $5.47 billion in revenue.

Sanjay Mehrotra, Micron president and CEO, commented: “We are ramping the industry’s most advanced DRAM technology into production and have delivered more than 75% of our NAND volume as high-value solutions, supported by record SSD revenue in the quarter. Our portfolio momentum positions us exceedingly well to leverage the long-term growth across our end markets.”

Micron stock closed Monday at $49.15, in a 52-week range of $31.13 to $61.19. The consensus price target is $62.46. Following the announcement, the stock was up about 6% at $52.20 in the after-hours session Monday.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.