Wedbush Cuts Price Target & Estimates on Micron Technology (MU) Following Poor Q3 Results and Q4 Outlook
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Price: $971.66 +2.30%
Rating Summary:
52 Buy, 11 Hold, 0 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
52 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Outperform rating on shares of Micron Technology (NASDAQ: MU), but is lowering its price target from $15 to $12.50 following the release of its Q3 earnings.
The company released its Q3 earnings with $2.14 billion in revenue and EPS of $0.07, which was well below the firms estimate of $2.39 billion and $0.16, and the Street's of $2.36 billion and $0.16. The firm notes that excluding one time tax items, MU's EPS would have been $0.15. Gross margin rose 3 percent quarter-over-quarter to 22.3 percent due to improving product mix.
MU announced that Q4 DRAM bit production may be up low- to mid-single digits with bit costs to be down mid- to high-single digits and NAND bit production to be up double digits with costs down in the double digits.
As a result of weaker than expected Q3 results and cautious view on DRAM demand for consumer PCs, Wedbush lowered its Q4 EPS estimate from $0.24 to $0.08 and its FY11 estimate from $0.63 to $0.37. The firm also released all new EPS estimates for fiscal 2012; Q1 is $0.16, Q2 is $0.19, Q3 is $0.24, Q4 is $0.28, and FY12 is $0.87. The new 2012 estimate is down 38 percent from its previous estimate.
An analyst at Wedbush commented, "Management expressed a cautious view on consumer PC demand but continues to be positive on corporate spending trends to drive corporate PC and Server demand and the NAND market noting demand from the smartphone, SSD, and tablet markets."
For more ratings news on Micron Technology click here and for the rating history of Micron Technology click here.
Shares of Micron Technology closed at $8.43 yesterday.
The company released its Q3 earnings with $2.14 billion in revenue and EPS of $0.07, which was well below the firms estimate of $2.39 billion and $0.16, and the Street's of $2.36 billion and $0.16. The firm notes that excluding one time tax items, MU's EPS would have been $0.15. Gross margin rose 3 percent quarter-over-quarter to 22.3 percent due to improving product mix.
MU announced that Q4 DRAM bit production may be up low- to mid-single digits with bit costs to be down mid- to high-single digits and NAND bit production to be up double digits with costs down in the double digits.
As a result of weaker than expected Q3 results and cautious view on DRAM demand for consumer PCs, Wedbush lowered its Q4 EPS estimate from $0.24 to $0.08 and its FY11 estimate from $0.63 to $0.37. The firm also released all new EPS estimates for fiscal 2012; Q1 is $0.16, Q2 is $0.19, Q3 is $0.24, Q4 is $0.28, and FY12 is $0.87. The new 2012 estimate is down 38 percent from its previous estimate.
An analyst at Wedbush commented, "Management expressed a cautious view on consumer PC demand but continues to be positive on corporate spending trends to drive corporate PC and Server demand and the NAND market noting demand from the smartphone, SSD, and tablet markets."
For more ratings news on Micron Technology click here and for the rating history of Micron Technology click here.
Shares of Micron Technology closed at $8.43 yesterday.
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