Micron Technology, Inc. (NASDAQ: MU) released their highly anticipated earnings yesterday, reporting a record period of revenue and earnings per share. “Our results reflect solid execution of our cost reduction plans and ongoing favorable industry supply and demand dynamics," said President and CEO Sanjay Mehrotra.
The company released record breaking Q3 results in addition to highly favorable Q4 guidance; with revenue of $5.57 billion and earnings per diluted shares of $1.62, compared to predicted revenue of between $5.2 billion and $5.6 billion, with an EPS range of $1.43 to $1.57. Micron attributed this meteoric rise to industry share gains as well a 14% increase in its DRAM product selling price and a 20% in its revenue. It also saw its NAND product line accrue a 17% growth in sales as well as dropping production costs. Because of these profits, the company was able to retire $1 billion in debt, allowing for more flexibility and financial heft for the upcoming quarter. It also reported growth in networking, graphics, and its Mobile Businesses, Embedded Business and Storage Business Units, with the latter three representing $3.1 billion in revenue.
Furthermore, the company released positive guidance for Q4 of 2017, with the market opening up for Micron. Revenue is predicted to continue growing in the range of $5.7 to $6.1 billion, and earnings per diluted share are expected to rise from $1.73 to $1.87, with odds are the company outperforming those benchmarks like it has every quarter since Q3-2015.
Amidst all this good news, the stock price has dropped from its opening high of $32.12 to $30.28 at the time of writing, representing a 3.77% decrease after results. Analysts attributed this drop to profit-taking, and concerns that the company has reached its peak average selling price, but the opportunity to get in while the price is low might be a tantalizing opportunity for someone looking for long term growth. "The global trends taking shape today, including machine learning and big data analytics, are exciting and create significant opportunities for Micron.”