Micron shares down after earnings report
NEW YORK (AP) — Shares of memory chip maker Micron Technology Inc. fell Friday after it reported earnings for the latest quarter that came in below analyst expectations.
THE SPARK: Late Thursday, the Boise, Idaho-based company posted a loss of $224 million, or 23 cents per share, for the three months ending March 1. In the same period a year ago, it earned $72 million, or 7 cents per share.
Analysts polled by FactSet had on average had expected a smaller loss of 19 cents per share.
Revenue fell 8 percent to $2.07 billion, but beat expectations for revenue of $2.02 billion.
THE ANALYSIS: Analyst Glen Yeung of Citigroup said investors were likely to be disappointed by the limited benefit Micron evidently got from improving prices for PC memory chips. However, he noted that it's normal for Micron's results to swing less than chip prices, and recommended that investors buy the shares after the stock slide has made them cheaper.
Tristan Gerra of R.W. Baird said Micron is set to benefit from the bankruptcy of Japanese competitor Elpida, and other trends in chip pricing should help support the stock through the year. He raised his price target on the shares by 20 percent, or $2, to $12.
SHARE ACTION: Micron shares were down 33 cents, or 3.8 percent, at $8.38 in afternoon trading. The shares had been up 38 percent this year.
