Micron Technology Earnings: Margins Suffer for Five Quarters Straight

S&P 500 (NYSE:SPY) component Micron Technology Inc. (NASDAQ:MU) reported its results for the first quarter. Micron Technology is a global manufacturer and marketer of Flash memory, image sensors and other semiconductor components.

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Micron Technology Inc. Earnings Cheat Sheet

Results: Loss widened to $275 million (27 cents per diluted share) from $187 million (loss of 19 cents per share) in the same quarter a year earlier.

Revenue: Fell 12.2% to $1.83 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Micron Technology Inc. fell short of the mean analyst estimate of a loss of 19 cents per share. It fell short of the average revenue estimate of $2 billion.

Key Stats:

Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 2.8 percentage points from the year-earlier quarter to 11.8%. In that span, margins have contracted an average of 7.1 percentage points per quarter on a year-over-year basis.

The company has missed analyst estiamtes for four quarters in a row. It fell short by 2 cents in the fourth quarter of the last fiscal year, by 13 cents in the third quarter of the last fiscal year, and by 7 cents in the second quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In the fourth quarter of the last fiscal year, revenue declined 8.3% to $1.96 billion from the year-earlier quarter.

Looking Forward: For the next quarter, analysts are increasingly pessimistic about the company’s performance. The average estimates for the second quarter is at a loss of 13 cents per share, down from 2 cents ninety days ago. For the fiscal year, the average estimate has moved down from a profit of 15 cents a share to a loss of 31 cents over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)