Micron Q4 Earnings Top Estimates, Shares Rise

Shares of

jumped over 5 percent in after-hours trading after the company reported better-than-expected earnings for its fiscal fourth quarter. The Boise, Idaho-based company posted quarterly net income of $471 million, or $0.42 per share, compared to $1.15 billion, or $0.96 per share, in the year-ago quarter. On a non-GAAP basis, the company's adjusted earnings came in at $0.37 per share. Its revenue dropped 15 percent year-over-year to $3.60 billion. However, analysts were expecting earnings of $0.33 per share on revenue of $3.56 billion. The average estimate among 150 Estimize users was for earnings of $0.41 per share and revenue of $3.63 billion. Its operating income slipped to $427 million in the latest quarter, versus $828 million in the year-ago period. Its overall consolidated gross margin declined 4 percent from the third quarter to 27 percent in the fourth quarter due to lower average selling prices for DRAM. Cash flows from operations for the fourth quarter totaled $1.03 billion. Micron ended the quarter with $5.63 billion in cash and marketable investments. "We are pleased to report Fiscal Year 2015 results that include revenue of $16.2 billion, $2.72 in non-GAAP earnings per share, and $2.3 billion in dilution management activities, including convert retirements and share repurchases," stated D. Mark Durcan, Chief Executive Officer. "While fourth quarter results were impacted by continued weakness in the PC sector, we believe that memory industry fundamentals remain favorable over the long term." Micron shares gained 5.35 percent to $15.56 in the after-hours trading session.