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Micron posts surprise profit, shares upPosted by Retirement on: 2005-09-30 07:25:55 in category:
Stocks & Securities [ Print | Permalink / 0 Comment(s) ] By Rex Crum, MarketWatch Last Update: 10:16 AM ET Sept. 30, 2005 SAN FRANCISCO (MarketWatch) - Micron Technology shares rose 5% early Friday after the company reported a surprise quarterly profit due to stronger than anticipated sales for memory chips used in computers and cell phones. The stock (MU: news, chart, profile) gained 60 cents to $12.79. After Thursday's closing bell, Micron earned $43.1 million, or 7 cents a share, in the fourth quarter, down 54% from the year-ago period. Sales rose 6% to $1.26 billion. The average estimate of analysts polled by Thomson First Call was for a loss of 8 cents a share in the August period on revenue of $1.17 billion. Micron, based in Boise, Idaho, makes memory chips used in everything from cell phones to digital cameras to computers to servers. On a conference call, Chief Executive Steven Appleton said Micron saw an "early season boost from personal-computer and cell phones (sales). Our end markets are quite healthy." Micron said revenue was helped by sequential increases of 15% in sales of its core dynamic random access memory chips, which are used in most personal computers, and 40% in sales of image sensors. Also, flash-memory sales grew five times above third-quarter levels. "Micron's efforts to strengthen our product lines through expansion of our specialty DRAM products, CMOS image sensors and NAND Flash memory products continue to have a positive impact on our gross margin," said Appleton, who also serves as the company's chairman and president. Micron said it saw a 3% increase in average selling prices for its DRAM products in the latest quarter. The company didn't give a first-quarter forecast. Analysts currently estimate Micron will earn 5 cents a share, on $1.3 billion revenue for its first fiscal quarter. Analyst reaction First Albany Capital cited the better than expected DRAM shipments for the unexpected profit. Micron's gross margin came in at 22.4%, well above its estimate of 12%. "We believe that the company's execution in the quarter was flawless, with improving margins across the company's product," the firm told clients. While First Albany expects Micron to boost sales in the current business period, it maintained its neutral rating on the company saying it does not "see strong earnings growth until the end of 2006." Homepage Other open community sites http://www.business-business.biz Please support our sponsors: To design your custom retirement plan. http://www.retirement-plan.us For planning IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management- Nationally ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
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