Micron Technology Earnings Cheat Sheet: Margins Shrink as Revenue Falls

S&P 500 (NYSE:SPY) component Micron Technology Inc. (NASDAQ:MU) swung to a loss in the fourth quarter, missing analysts’ forecast. Micron Technology is a global manufacturer and marketer of Flash memory, image sensors and other semiconductor components.

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Micron Technology Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $135 million (14 cents per diluted share) in the quarter. The semiconductor company had net income of $342 million or 30 cents per share in the year earlier quarter.

Revenue: Fell 14.2% to $2.14 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MU fell short of the mean analyst estimate of 8 cents per share. It fell short of the average revenue estimate of $2.37 billion.

Key Stats:

Gross margins fell 16.3 percentage points to 15%. The contraction appeared to be driven by falling revenue, as the figure fell 14.2% from the year earlier while costs rose 6.3%.

MU’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $75 million in the third quarter, a profit of $72 million in the second quarter and $155 million in the first.

The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by 8 cents with net income of 9 cents versus a mean estimate of net income of 17 cents per share.

Revenue has fallen in the past two quarters. In the third quarter, revenue declined 6.5% to $2.14 billion from the year earlier quarter.

Competitors to Watch: Intel Corporation (NASDAQ:INTC), Spansion Inc. (NYSE:CODE), SanDisk Corporation (NASDAQ:SNDK), Integrated Silicon Solution, Inc. (NASDAQ:ISSI), Nvidia (NASDAQ:NVDA), Inc. (NASDAQ:SMOD), MoSys Inc. (NASDAQ:MOSY), LOGIC Devices Incorporated (NASDAQ:LOGC), Netlist, Inc. (NASDAQ:NLST), GSI Technology, Inc. (NASDAQ:GSIT), and Integrated Device Tech., Inc. (NASDAQ:IDTI).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)