Micron Technology First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Micron Technology (NASDAQ:MU) will unveil its latest earnings on Thursday, December 20, 2012. Micron Technology is a global manufacturer and marketer of Flash memory, image sensors and other semiconductor components.

Micron Technology Earnings Preview Cheat Sheet

During the past three months, the average estimate has moved down from a loss of 5 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 19 cents during the last month.

Past Earnings Performance: The company enters this earnings report having missed estimates the last four quarters. Last quarter, the company fell short of expectations by 2 cents, reporting a loss of of 24 cents per share against a mean estimate of net loss of 22 cents per share.

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A Look Back: In the fourth quarter of the last fiscal year, the company’s loss widened to a loss of a $243 million (24 cents a share) from a loss of $135 million (13 cents) a year earlier, missing analyst expectations. Revenue fell 8.3% to $1.96 billion from $2.14 billion.

Stock Price Performance: From November 15, 2012 to December 14, 2012, the stock price rose $1.38 (25.2%), from $5.47 to $6.85. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 9, 2012, when shares rose for eight straight days, increasing 18.3% (+$1.13) over that span. It saw one of its worst periods between October 17, 2012 and October 24, 2012 when shares fell for six straight days, dropping 10.6% (-61 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.01 billion in revenue this quarter, a decline of 3.8% from the year-ago quarter. Analysts are forecasting total revenue of $8.62 billion for the year, a rise of 4.7% from last year’s revenue of $8.23 billion.

Key Stats:

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 1.5% in the the third quarter of the last fiscal year after dropping in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With 19 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.57 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.59 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3% to $2.24 billion while assets rose 2.3% to $5.76 billion.

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