Stock Update (NASDAQ:MU): Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2016


Micron Technology, Inc. (NASDAQ:MU) announced results of operations for its second quarter of fiscal 2016, which ended March 3, 2016. Revenues for the second quarter of fiscal 2016 were $2.93 billion and were 12 percent lower compared to the first quarter of fiscal 2016 and 30 percent lower compared to the second quarter of fiscal 2015. Cash flows from operations were $763 million for the second quarter of fiscal 2016.

GAAP Income and Per Share Data — On a GAAP(1) basis, net loss attributable to Micron shareholders for the second quarter of fiscal 2016 was $97 million, or ($0.09) per diluted share, compared to net income of $206 million, or $0.19 per diluted share, for the first quarter of fiscal 2016.

Non-GAAP Income and Per Share Data — On a non-GAAP(2) basis, net loss attributable to Micron shareholders for the second quarter of fiscal 2016 was $48 million, or ($0.05) per diluted share, compared to net income of $249 million, or $0.24 per diluted share, for the first quarter of fiscal 2016. For a reconciliation of GAAP to non-GAAP results, see the accompanying financial tables and footnotes.

“Although we continue to navigate challenging market conditions, we are on track with deploying our advanced DRAM and NAND technologies and improving our cost structure,” said Micron CEO Mark Durcan. “As a result, we expect to significantly improve our competitive position as we move through the second half of 2016 and beyond.”

Revenues for the second quarter of fiscal 2016 were lower compared to the first quarter of fiscal 2016 primarily due to approximate 10 percent declines in both DRAM average selling prices and sales volume. Non-Volatile trade revenues for the second quarter of fiscal 2016 declined 6 percent compared to the first quarter primarily as a result of an approximate 15 percent decline in average selling prices partially offset by an increase in sales volume. The company’s overall consolidated gross margin of 20 percent for the second quarter of fiscal 2016 was 5 percent lower compared to the first quarter of fiscal 2016 primarily due to lower average selling prices partially offset by manufacturing cost reductions for Non-Volatile products.

Investments in capital expenditures for the second quarter of fiscal 2016 were $1.23 billion. The company ended the second quarter of fiscal 2016 with cash and marketable investments of $5.14 billion. (Original Source)

Shares of Micron closed today at $10.48, up $0.03 or 0.29%. MU has a 1-year high of $29.78 and a 1-year low of $9.31. The stock’s 50-day moving average is $10.89 and its 200-day moving average is $13.86.

On the ratings front, Micron Technology has been the subject of a number of recent research reports. In a report released yesterday, Needham analyst Rajvindra Gill downgraded MU to Sell, with a price target of $10, which represents a slight downside potential from current levels. Separately, on the same day, Merrill Lynch’s Simon Woo reiterated a Sell rating on the stock and has a price target of $10.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Rajvindra Gill and Simon Woo have a total average return of 14.9% and 8.9% respectively. Gill has a success rate of 56.4% and is ranked #52 out of 3766 analysts, while Woo has a success rate of 45.5% and is ranked #816.

The street is mostly Bullish on MU stock. Out of 17 analysts who cover the stock, 11 suggest a Buy rating , 3 suggest a Sell and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $14.71, which represents a potential upside of 40.0% from where the stock is currently trading.

Micron Technology, Inc. provides semiconductor solutions. It manufactures and distributes semiconductor solutions. It manufactures and markets DRAM, NAND Flash and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products.