Micron turned in a strong fiscal Q1 (ending Nov. 30), with net income soaring 200% to $192m, or $0.25/share, beating analyst estimates surveyed by Thomson and Bloomberg by $0.05/share and $0.06/share, respectively. Revenue was up 16% on the quarter to $1.58b, led by high demand for DRAM chips, but missed analyst estimates of between $1.64b-$1.65b. Profit margins however, improved to 31%, from 24% in Q4 and 23% y/y, due to a 15% price increase of DRAM in the quarter. Management did not give guidance on the current quarter, but Micron's VP of Worldwide Sales commented in its post-earnings conference call that, "We are on the front edge of feeling the Vista impact and this will layer out throughout 2007." Micron's shares gained 0.15% yesterday closing at $13.49 and traded as high as $14.20 in extended trading on volume of about 1.7m shares. First Albany Capital upgraded Micron to "buy" from "neutral," raising its Q2 EPS to $0.11, from $0.04, while lowering its sales estimate to $1.60b, from $1.69b. First Albany likes Micron's valuation, saying H1'07 weakness was priced in, but a strong H2'07 is not.
• Sources: Press release and presentation [pdf], Bloomberg, Reuters, TheStreet.com
• Related commentary: Micron Up On Strong Earnings, Micron Facing A Tough Near Term Picture, Five Stocks For The Microsoft Vista Cycle, Intel and Micron to Expand NAND Flash JV to Singapore. Conference call transcripts: Micron Technology F4Q06 (Qtr End 8/31/06)
• Potentially impacted stocks and ETFs: Micron Technology (NASDAQ:MU). Competitors: OmniVision Technologies (NASDAQ:OVTI), Qimonda AG (QI), SanDisk (SNDK), Sony (NYSE:SNE), STMicroelectronics NV (NYSE:STM), Toshiba (OTCPK:TOSBF). ETFs: iShares Goldman Sachs Semiconductor (IGW), Semiconductor HOLDRs (NYSEARCA:SMH), SPDR Semiconductor (NYSEARCA:XSD)
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