Micron Technology Inc. Earnings Cheat Sheet: Margins Keep Shrinking

S&P 500 (NYSE:SPY) component Micron Technology Inc. (NASDAQ:MU) swung to a loss in the first 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 First Quarter

Results: Reported a loss of $187 million (19 cents per diluted share) in the quarter. The semiconductor company had net income of $155 million or 15 cents per share in the year earlier quarter.

Revenue: Fell 7.2% to $2.09 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MU fell short of the mean analyst estimate of a loss of 6 cents per share. It fell short of the average revenue estimate of $2.17 billion.

Key Stats:

Gross margins fell 8.7 percentage points to 14.6%. The contraction appeared to be driven by falling revenue, as the figure fell 7.2% from the year earlier while costs rose 3.3%.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 14 cents in the fourth quarter of the last fiscal year and by 8 cents in the third quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the fourth quarter of the last fiscal year, revenue declined 14.2% to $2.14 billion while the figure fell 6.5% in the third quarter of the last fiscal year from the year earlier.

Looking Forward: Expectations for the company’s performance in the upcoming quarter are lower than they were ninety days ago. Over the past three months, the average estimate for the second quarter has fallen from a profit of 11 cents per share to a loss of 2 cents. The average estimate for the fiscal year is 12 cents per share, down from 64 cents ninety days ago.

Competitors to Watch: Intel Corporation (NASDAQ:INTC), Spansion Inc. (NYSE:CODE), SanDisk Corporation (NASDAQ:SNDK), Integrated Silicon Solution, Inc. (NASDAQ:ISSI), SMART Modular Tech. (WWH), 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).

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