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June 24, 2014
11:52 EDTSNDK, MUMicron climbs, upgraded after results beat expectations
Shares of computer memory maker Micron Technology (MU) are climbing after the company's third quarter earnings per share and revenue surpassed analysts' expectations. WHAT'S NEW: Micron's Q3 EPS of 79c was 9c higher than expectations, while its Q3 revenue of $3.98B beat analysts' consensus forecast of $3.89B. Revenues for both DRAM and NAND Flash products were down slightly for the quarter compared to last year's results. The company’s overall consolidated gross margin of 34% for Q3 was consistent with last quarter's results, as mix-related decreases in average selling prices were essentially offset by corresponding decreases in manufacturing costs. WHAT'S NOTABLE: During the company's earnings conference call, Micron guided Q4 total revenue to be in the range of $4B-$4.2B on a consolidated basis. Micron said Q4 trade NAND gross margins are expected to be down a couple of points compared to Q3 based on bit production expected to be up low-to mid-teens, average selling price down low to mid-single digits, and cost per bit flat compared to Q3. Q4 DRAM gross margin is anticipated to be flat to up slightly compared to Q3. Q4 gross margins are expected to be adversely affected in the $30M range by a last-time sale of end-of-life legacy architecture products not included in the company's DRAM and NAND guidance. In terms of expenditures for property, plant and equipment, Micron said that it is on track to be within its guided range for FY14 of between $2.8B-$3.2B, with over $1B of expenditures planned for Q4. Micron added that it has no plans to expand wafer production in FY15 and that it expects long-term NAND demand/supply to be in balance. ANALYST OPINION: Following its report and guidance, Needham upgraded Micron to Strong Buy from Buy and raised its price target for shares to $50 from $40. Analysts at Roth Capital, Jefferies, and JPMorgan also raised their price targets on the shares this morning. Goldman Sachs Analyst Mark Delaney said the firm is maintaining its Neutral rating on Micron as the firm is worried that DRAM fundamentals could be close to peak and attract incremental supply. However, he feels that investors will perceive Micron's plan to not add new wafer capacity next year positively. Goldman Sachs' price target on Micron remains at $29. PRICE ACTION: During late-morning trading, shares of Micron rose $1.59 or 5.07%, to $32.85. Shares of SanDisk (SNDK), which also offers data storage solutions in a range of form factors, are up 1% to $103.26.
News For MU;SNDK From The Last 14 Days
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December 19, 2014
11:54 EDTMUMicron January volatility elevated at 46 into Q1 and outlook
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07:57 EDTMUMicron January volatility elevated at 46 into Q1 and outlook
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07:42 EDTMUEPAM, WisdomTree added to Franchise Pick list at Jefferies
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December 15, 2014
10:00 EDTSNDKOn The Fly: Analyst Upgrade Summary
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08:14 EDTSNDKSanDisk upgraded to Buy from Hold at Summit Research
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December 12, 2014
06:13 EDTMUMicron in talks to revise supply agreement with Inotera, DigiTimes reports
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December 9, 2014
06:25 EDTMUMicron attempt to renegotiate supply agreement with Inotera, DigiTimes says
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December 8, 2014
07:36 EDTMUMicron December volatility of 31 at low end of historic range
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