Micron Sets a New 52-Week High - Analyst Blog
2013年3月25日 - 8:50PM
Zacks
Shares of Micron Technology
Inc. (MU) reached a 52-week high of $10.27 on Friday, Mar
22, 2013. Micron shares gained momentum following solid guidance
provided in its second-quarter 2013 results announced the day
before. Expected synergies from the much-awaited Elpida buyout
could be another key driver. The closing price of the memory-chip
maker on Mar 22, 2013, was $10.04, representing a robust 1-year
return of about 21.7% and year-to-date return of about 51.4%.
Average volume of shares traded over the last three months stand at
approximately 29.1 million.
Moreover, this Zacks Rank #2 (Buy) company has a market cap of
$10.2 billion and a long-term expected earnings growth rate of
12.7%.
Mixed Bag Second Quarter Results, View Upbeat
Micron reported revenues of $2.08 billion, up 3.4% year over year
and 13.3% sequentially. The quarter’s revenues came well above the
Zacks Consensus Estimate of $1.91 billion. The improvement was
mainly due to higher DRAM and NAND shipments as well as favorable
supply/demand scenario.
Gross margin expanded 710 basis points on higher volume sales of
NAND flash and DRAM chips as well as lower cost of production.
Operating margin was (1.1%) versus (10.2%).
Micron reported loss per share of 28 cents, which was better than
the year-ago quarter results but wider than the Zacks Consensus
Estimate of 20 cents loss per share. The loss was mostly due to
lower average selling price (ASP), lackluster PC demand and macro
uncertainty, slightly offset by higher sales volume.
Guidance
Micron did not provide any specific guidance for revenues or
earnings. But it mentioned its optimism for the end markets such as
mobile, server, networking enterprise and embedded based on strong
demand for its memory chips. Micron is also confident of witnessing
supply/demand balance for DRAM and NAND memory chips in 2013 and
2014. The chip maker expects industry-wide DRAM wafer capacity to
get reduced, which will bring down supply, ultimately boosting ASP.
For NAND, Micron is confident about growing demand due to
increasing use of solid state drives in smartphones.
Micron also stated that it is focusing more in the mobile DRAM
space and it has already designed low power DDR2 chips for two of
the top five smartphone makers.
Estimate Revision
Following the earnings release, the Zacks Consensus Estimates for
2013 and 2014 rose 2 cents each to 53 cents and 60 cents,
respectively, in the past 7 days. Two and three estimates moved
upward for 2013 and 2014, respectively.
However, only one estimate moved downward for 2013 in the past 7
days.
Conclusion
Despite another quarter of loss due to PC market overhang, macro
backdrop, soft DRAM and NOR prices and flat NAND prices, we remain
encouraged by management’s upbeat view on the DRAM and NAND market
fundamentals. We also believe that tight expense control,
manufacturing efficiency and secular shift toward mobile DRAM will
benefit Micron’s fundamentals in the coming quarters.
Apart from this, the soon-to-be completed Elpida acquisition will
help Micron to gain memory market share, which is mostly dominated
by SanDisk Corp. (SNDK). Micron will also be able
to save roughly $400.0 million on the purchase price, given
stronger dollar value against Yen.
Other Stocks to Consider
Other stocks in the technology industry that are currently
performing well and have a solid visibility include Rambus
Inc. (RMBS) and Cabot Microelectronics
Corp. (CCMP) both with a Zacks Rank #1 (Strong Buy).
CABOT MICROELEC (CCMP): Free Stock Analysis Report
MICRON TECH (MU): Free Stock Analysis Report
RAMBUS INC (RMBS): Free Stock Analysis Report
SANDISK CORP (SNDK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
CMC Materials (NASDAQ:CCMP)
過去 株価チャート
から 6 2024 まで 7 2024
CMC Materials (NASDAQ:CCMP)
過去 株価チャート
から 7 2023 まで 7 2024
Real-Time news about CMC Materials Inc (ナスダック市場): 0 recent articles
その他のCabot Microelectronicsニュース記事