Company Update (NASDAQ:MU): Micron Technology, Inc. Shares Rise 7% Following First Fiscal Quarter Results of 2017


Micron Technology, Inc. (NASDAQ:MU) announced results of operations for its first quarter of fiscal 2017, which ended December 1, 2016. Revenues for the first quarter of fiscal 2017 were $3.97 billion and were 23 percent higher compared to the fourth quarter of fiscal 2016 and 19 percent higher compared to the first quarter of fiscal 2016.

“Positive market momentum, driven by favorable demand trends and limited industry supply, produced solid results for our first quarter,” said Micron CEO Mark Durcan. “We continue to make significant progress on our key technology and product initiatives, and we are pleased to have closed the Inotera acquisition on December 6, 2016, which we expect to further improve Micron’s strategic position and financial results.”

GAAP Income and Per Share Data – On a GAAP basis, net income attributable to Micron shareholders for the first quarter of fiscal 2017 was $180 million, or $0.16 per diluted share, compared to a net loss of $170 million, or ($0.16) per diluted share, for the fourth quarter of fiscal 2016 and 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 basis, net income attributable to Micron shareholders for the first quarter of fiscal 2017 was $335 million, or $0.32 per diluted share, compared to a net loss of $9 million, or ($.01) per diluted share, for the fourth quarter of fiscal 2016 and net income of $299 million, or $0.29 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.

The increase in the company’s revenues of 23 percent for the first quarter of fiscal 2017 compared to the fourth quarter of fiscal 2016 was due primarily to 18 percent and 26 percent increases in DRAM and trade NAND sales volumes, respectively, and a 5 percent increase in DRAM average selling prices. The company’s overall consolidated GAAP gross margin of 25 percent for the first quarter of fiscal 2017 was 7 percentage points higher compared to the fourth quarter of fiscal 2016 primarily due to manufacturing cost reductions and increases in DRAM average selling prices.

Investments in capital expenditures, net of amounts funded by partners, were $1.18 billion for the first quarter of fiscal 2017. The company ended the first quarter of fiscal 2017 with cash and marketable investments of $4.32 billion.

The company will host a conference call Wednesday, Dec. 21, 2016 at 2:30 p.m. MT to discuss its financial results. (Original Source)

Shares of Micron Technology are rising 7.39% to $22.12, or up $1.54 in after-market trading Wednesday. MU has a 1-year high of $21 and a 1-year low of $9.31. The stock’s 50-day moving average is $18.93 and its 200-day moving average is $16.14.

On the ratings front, Micron Technology has been the subject of a number of recent research reports. In a report released today, Summit Redstone analyst Jagadish Iyer upgraded MU to Buy, with a price target of $26, which implies an upside of 25% from current levels. Separately, on December 19, Deutsche Bank’s Sidney Ho reiterated a Buy rating on the stock and has a price target of $24.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jagadish Iyer and Sidney Ho have a yearly average return of 23.8% and 18.0% respectively. Iyer has a success rate of 65% and is ranked #180 out of 4291 analysts, while Ho has a success rate of 73% and is ranked #124.

Overall, 2 research analysts have rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and 17 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $23.46 which is 13.1% above where the stock opened today.

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. The company operates through four segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Storage Business Unit (SBU), and Embedded Business Unit (EBU). The CNBU segment includes DRAM and NOR Flash products sold to the computing, networking, graphics and cloud server markets. The MBU segment includes DRAM, NAND Flash and NOR Flash products sold to the smartphone, feature phone and tablet mobile device market. The SBU segment includes NAND Flash components and SSDs sold into enterprise and client storage, cloud and removable storage markets. SBU also includes NAND Flash products sold to Intel through its IMFT joint venture. The EBU includes DRAM, NAND Flash and NOR Flash products sold into automotive and industrial applications, as well as the connected home and consumer electronics markets.