Micron Drops on Soft Results

Features FOXBusiness

Shares of memory chip maker Micron (MU) retreated sharply Friday in response to the tech companys surprisingly gloomy quarterly results.

Continue Reading Below

Analysts on Wall Street responded to Microns weaker-than-expected results by quickly slashing their price targets on the stock.

Reporting after Thursdays closing bell, the Boise-based maker of dynamic random access memory chips said it earned $75 million, or 7 cents a share, compared with $939 million, or 92 cents a share, a year earlier. Analysts had been calling for much more robust EPS of 16 cents.

Sales slid 6.5% to $2.14 billion, trailing the Streets view of $2.36 billion. Gross margins shrank to 22.3% from 37.1%.

We've all seen a softening of the desktop and notebook PC climate, partially offset by some growth around tablets," Mark Adams, the companys vice president of worldwide sales, said on a conference call. "At this point, it's hard for us to call too much further out in the future."

Wall Street expressed concern with the results, driving Microns stock 9.62% lower to $7.61 Friday morning, leaving it up just 5% on the year.

Continue Reading Below

A slew of brokerages also issued negative notes on the stock, including Macquarie, which slashed its target to $7.50 from $11.20 but maintained a neutral rating.

Lazard and ThinkEquity both lowered their target prices to $12 from $15 while keeping buy recommendations.

What do you think?

Click the button below to comment on this article.