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Micron Technology, Inc. (NASDAQ:MU), together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Its products for data storage and retrieval comprise dynamic random access memory (DRAM) products, including DDR2 and DDR3 for use as main system memory in computers and servers; and other specialty DRAM memory products, such as DDR and DDR2 mobile low power DRAM, DDR, SDRAM, reduced latency DRAM, and pseudo-static RAM used in laptop computers, tablets, and other consumer devices.

It is scheduled to report its Q3 2012 results on June 20, 2012, after the market closes.

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last four quarters. In the last quarter it reported ($0.29) loss per share, failing to meet analyst estimates of ($0.19) loss.

The consensus EPS is ($0.20) loss based on 25 analysts' estimates, down from $0.07 EPS a year ago. Revenue estimates are $2.01B, down from $2.14B a year ago. The median target price by analysts for the stock is $11.00. The last closing price was $5.86.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 26, 2012, the company was downgraded from Outperform to Perform at Oppenheimer.
  • On February 24, 2012, MKM Partners reiterated Buy rating for the company.
  • On February 6, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On January 3, 2012, the company was upgraded from Equal Weight to Overweight at Barclays Capital.
  • On December 22, 2011, Sterne Agee initiated Buy rating for the company.

Key Metrics

  • Market Cap: 5.80B
  • 52-week trading range: 3.97 - 9.16
  • Trailing P/E: N/A
  • Forward P/E: 10.10
  • Price/Sales: 0.69
  • Price/Book: 0.73
  • PEG Ratio: -0.73
  • Total Debt: 2.32B
  • Annual dividend yield: N/A
  • Return on Equity: -5.45%
  • Return on Assets: -0.70%

Latest Developments

  • On May 30, 2012, Origin Energy Limited announced that Transform Solar, a 50:50 solar photovoltaic joint venture between Micron Technology Inc. and Origin Energy Limited (Origin), decided to discontinue production of its SLIVER photovoltaic modules in Idaho, United States.
  • On May 10, 2012, Micron Technology, Inc. confirmed it is engaged in discussions with Elpida Memory, Inc.'s trustees to acquire Elpida's business. Micron made the announcement following a May 10 approval by the Tokyo District Court allowing Elpida's trustees to negotiate an agreement with Micron, pursuant to which Micron would become Elpida's sponsor and acquire Elpida's entire business in accordance with the corporate reorganization proceedings.
  • On May 7, 2012, Reuters reported that Micron Technology, Inc. has won the right to negotiate exclusively to buy Japanese chip maker Elpida Memory, Inc. after offering more than JPY200 billion ($2.5 billion) for the company.
  • On April 11, 2012, Micron Technology, Inc. announced that it intends to offer, subject to market and other considerations, $435.0 million aggregate principal amount of convertible senior notes due 2032 and $435.0 million aggregate principal amount of convertible senior notes due 2032 through an offering in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
  • On March 30, 2012, Micron Technology, Inc. announced that it reached an agreement with Oracle America Inc. to settle a lawsuit filed by Oracle against Micron in the U.S.
  • On March 6, 2012, Photronics, Inc. announced that it paid approximately $35 million to Micron Technology, Inc. in connection with the purchase of its U.S. nanoFab building in Boise, ID that it previously leased from the building's owner Micron.
  • On February 4, 2012, Micron Technology, Inc. announced the appointment of D. Mark Durcan as Chief Executive Officer (NYSE:CEO) of the Company. Mr. Durcan will also serve as a Director on Micron's Board of Directors.
  • On February 4, 2012, Wall Street Journal reported that Steven R. Appleton, Chairman and Chief Executive of Micron Technology, Inc. died February 3, 2012 when the airplane he was piloting crashed at Boise, Idaho's airport.
  • On February 3, 2012, Micron Technology, Inc. announced earlier today that the Company is deeply saddened by the death of Chairman and Chief Executive Officer Steve Appleton in a small plane accident in Boise.
  • On January 26, 2012, Micron Technology, Inc. announced that D. Mark Durcan, President and Chief Operating Officer (COO), will be retiring at the completion of Micron's current fiscal year at the end of August 2012.

Competitors

Micron Technology Inc. operates in Semiconductor - Memory Chips industry. The company could be compared with Spansion Inc. (NYSE:CODE), Microchip Technology Inc. (NASDAQ:MCHP), Rambus Inc. (NASDAQ:RMBS), and Ramtron International Corp. (RMTR). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)MU Chart

MU data by YCharts

Competitors' Latest Development

  • On June 12, 2012, Cypress Semiconductor Corp announced that it has submitted a proposal to Ramtron International Corp to acquire all of its outstanding stock for $2.48 per share in cash.
  • On June 12, 2012, Rigrodsky & Long, P.A. announced that it is investigating potential legal claims against the board of directors of Ramtron International Corporation regarding possible breaches of fiduciary duties and other violations of law related to the Company's receipt of a proposal from Cypress Semiconductor Corporation to acquire all of the outstanding shares of the Company's common stock in a transaction valued at approximately $87.6 million.
  • On May 9, 2012, Ramtron International Corporation announced that it has named its interim Chief Financial Officer, Gery E. Richards, as Chief Financial Officer effective immediately.
  • On May 2, 2012, Microchip Technology Inc and Standard Microsystems Corporation announced that Microchip has signed a definitive agreement to acquire Standard Microsystems Corporation (NASDAQ:SMSC) for $37.00 per share in cash, which represents a total equity value of about $939 million, and a total enterprise value of about $766 million, after excluding SMSC's cash and investments on its balance sheet of approximately $173 million.
  • On May 2, 2012, Microchip Technology, Inc. announced that for the first quarter of 2013 it expects net sales of $349.1-$362.6 million and earnings per share on GAAP basis between $0.40-$0.42 and on non GAAP basis between $0.47-0.49.
  • On April 26, 2012, Spansion Inc. announced that for second quarter of 2012, it expects U.S. GAAP net sales in the range of $220 million to $235 million, GAAP diluted net income per share of $0.34 to $0.43 and non-GAAP diluted EPS to be between $0.15 and $0.21.
  • On April 19, 2012, Microchip Technology, Inc. announced the acquisition of Roving Networks. Roving Networks is a privately held, fabless semiconductor developer of Wi-Fi certified transceivers and FCC certified Wi-Fi and Bluetooth modules.
  • On April 19, 2012, Rambus Inc. announced that for the second quarter of 2012, it expect revenue to be between $53 million and $59 million and pro forma net income to be between a loss of $6 million and break even.
  • On April 19, 2012, Ramtron International Corporation announced that for fiscal 2012, it is reaffirming total revenue of approximately $70 million and GAAP net income of approximately $0.06 per share .
  • On April 2, 2012, Spansion Inc. and SK Hynix announced an alliance to deliver Spansion SLC NAND products at the 4x, 3x, and 2x nodes to the embedded market. The first Spansion SLC NAND products resulting from this alliance will be available beginning in the second quarter of 2012.
  • On April 2, 2012, Rambus Inc. announced it has signed a license agreement with Fern Howard, a manufacturer of energy efficient lighting. This agreement enables Fern Howard to sell advanced lighting products based on Rambus lighting solutions incorporating Rambus patented innovations including MicroLens optics technology.
  • On March 21, 2012, Spansion Inc. announced a partnership with Nuance Communications Inc., to accelerate voice recognition innovation for embedded technologies. As innovators of semiconductor products and voice recognition respectively, Spansion and Nuance are working together on enhancing the responsiveness and quality of voice recognition for embedded solutions addressing the automotive, gaming and consumer electronics applications.
  • On March 5, 2012, Rambus Inc. announced that it has signed a patent license agreement with MediaTek Inc.. This agreement covers the use of Rambus patented innovations in a broad range of integrated circuit (IC) products offered by MediaTek Inc.
  • On February 28, 2012, Ramtron International Corporation announced they have entered into a partnership to enable the integration of Revere Security's Hummingbird HB-2 security technology into Ramtron's nonvolatile ferroelectric random access memory (F-RAM) products.
  • On February 27, 2012, Rambus Inc. announced that it has begun a search for a successor to Chief Executive Officer Harold Hughes, who is planning to retire from his current position.
  • On February 16, 2012, Ramtron International Corporation announced that it intend to remain EBITDA positive and expect EPS to be slightly negative to break even for the first quarter of 2012.
  • On February 14, 2012, Microchip Technology, Inc. announced its complete, integrated RF front-end module for WLAN IEEE 802.11b/g/n and Bluetooth systems-the SST12LF03. This device features a transmitter power amplifier, a receiver low-noise amplifier (LNA) and a low-loss antenna switch-in one integrated, compact package.
  • On February 8, 2012, Rambus Inc. announced that it has signed a patent license agreement with NVIDIA Corp.. The agreement covers the use of Rambus patented innovations in a broad range of integrated circuit (IC) products offered by NVIDIA.
  • On February 6, 2012, Rambus Inc. announced that it has acquired privately held Unity Semiconductor, a memory technology company for an aggregate of $35 million in cash. As part of this acquisition, the Unity team members have joined Rambus to continue developing innovations and solutions for next-generation non-volatile memory.
  • On February 2, 2012, Microchip Technology, Inc. announced that it expect revenue in the fourth quarter of 2012 to be up between 1% and 5% and are forecasting sequential improvements in non-GAAP gross margins, operating margins and earnings per share .
  • On January 27, 2012, Rambus Inc. announced that for the first quarter of 2012, it expect revenue to be between $59 million and $64 million and pro forma net income to be between a loss of $2 million and an income of $4 million.
  • On January 26, 2012, Spansion Inc. announced that for the first quarter of 2012, it estimates U.S. GAAP net sales in the range of $210 million to $230 million and GAAP net income per share of ($0.34) to ($0.21).
  • On January 11, 2012, Ramtron International Corporation announced that it expects to report fiscal 2011 revenue of approximately $66.4 million. The Company expects fourth-quarter 2011 results will allow it to achieve its previously announced net income guidance of $0.02 to $0.05 per share for the second half of 2011.
  • On January 9, 2012, Rambus Inc.'s Cryptography Research, Inc. and CPU Technology, Inc. announced that they have signed a patent license agreement regarding the use of CRI's patented innovations in CPU Tech products.
  • On January 3, 2012, Reuters reported that Rambus Inc. raised fourth-quarter 2011 revenue guidance, despite losing a major lawsuit late last year. The Company expects to report fourth-quarter revenue that is well above its previously announced target.
  • On December 19, 2011, Cryptography Research, Inc. (NYSE:CRI), a division of Rambus , and INVIA SAS announced they have entered into an agreement enabling INVIA to develop products incorporating Differential Power Analysis countermeasures for use by licensees of CRI's DPA patents.

Technical Insight

The stock has been in a real downtrend since the end of March (correlates with downgrade by Oppenheimer). It is trading below 50- and 200-SMA on daily trend. On the weekly chart it looks like the stock is testing the support at around $5.5.

Discussion

Do you think the company will continue to fail meeting the analyst estimates like it did in the last four quarters?

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Micron Technology Releases Earnings On Wednesday