Micron Technology Inc. (MU): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

By
A A A

Summary:
Micron reported modest fourth-quarter fiscal 2014 results. While the top line surpassed the Zacks Consensus Estimate, the bottom line matched the same. Year-over-year revenues also compared favorably. The results were primarily boosted by improving market conditions as well as an encouraging operating performance. Moreover, Micron provided encouraging revenue guidance for the forthcoming quarter. The company is also optimistic about supply/demand balance for DRAM and NAND memory chips in 2014, which should support prices. However, it may not be easy for Micron to capture share from SanDisk Corp. a key NAND player. Nevertheless, support from Apple and Intel Corp., its prime NAND customers, will help Micron, going forward. Thus, we reiterate our Outperform recommendation for the stock.

Overview:

Idaho-based Micron Technology (MU) is a provider of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets Dynamic Random Access Memory (DRAM), NAND flash memory, CMOS image sensors, other semiconductor components and memory modules used in leading-edge computing, consumer, networking and mobile products. A major portion of the revenues is derived from DRAM sales. The company also provides CMOS image sensor solutions to the handset camera, digital still camera and PC video camera markets. On Dec 29, 2009, Micron voluntarily transferred its stock exchange listing from The New York Stock Exchange to the Nasdaq Global Select Market, a market of The NASDAQ OMX Group.

The company used to report under four segments namely, DRAM Solutions Group (DSG) which includes DRAM products sold to the PC, consumer electronics, and networking and server markets NAND Solutions Group (NSG) which constitutes high-volume NAND Flash products sold into data storage, personal music players, and the high-density computing market Wireless Solutions Group (WSG) which deals with DRAM, NAND Flash and NOR Flash products, including multi-chip and Embedded Solutions Group (ESG) which includes DRAM, NAND Flash and NOR Flash products used in automotive and industrial applications, as well as NOR and NAND Flash sold to consumer electronics, networking, PC and server markets.

The company reorganized its business units in the third quarter of 2014 into four reportable segments namely, Compute and Networking Business Unit (CNBU) comprising of DRAM and NOR Flash products that are sold to the computer, networking, graphics, and cloud server markets, and NAND Flash products sold in the networking market Storage Business Unit (SBU) accounts for the NAND Flash components and Solid State Drives (SSDs) sold in enterprise and client storage markets, and cloud and removable storage markets Mobile Business Unit (MBU) comprise Micron's DRAM, NAND Flash, and NOR Flash products that are sold to smartphone, feature phone, and tablet mobile-device manufacturers. Embedded Business Unit (EBU) which includes DRAM, NAND Flash and NOR Flash products from Micron sold to automotive and industrial applications providers and other consumer electronics manufacturers.

The bulk of revenues is generated in China, followed by the U.S., Asia Pacific (excluding China, Taiwan and Malaysia), Taiwan, Europe and Malaysia.

Micron competes with Samsung, Electronics Co., Ltd., SanDisk Corporation SK Hynix Inc., Spansion Inc. and Toshiba Corporation.


Micron Technology Inc. (MU): Read the Full Research Report
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MICRON TECH (MU): Free Stock Analysis Report

To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: MU , DRAM , DSG

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

64,789,752
  • $117.60 ▼ 0.86%
53,107,118
  • $10.39 ▼ 1.05%
42,600,857
  • $17.10 ▼ 0.47%
36,917,582
  • $11.02 ▼ 0.36%
34,902,121
  • $40.75 ▼ 0.10%
31,489,742
  • $15.68 ▲ 0.06%
31,037,743
  • $75.63 ▲ 2.19%
29,605,187
  • $10.11 ▼ 0.69%
As of 11/25/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com