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Micron’s Price Movement: A Fall in Revenue and Income

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Micron’s price movement

Micron Technology (MU) has a market cap of $16.23 billion. Micron’s YTD (year-to-date) price movement has been falling day by day with the fall in the net revenue and income. After the earnings report in 4Q15, Micron fell by 1.40% and closed at $14.77 per share as of October 1, 2015. The price movement on a weekly, monthly, and YTD basis is -3.72%, -6.64%, and -57.81%, respectively. It’s trading at -0.94% on a trailing five-day basis.

Technically, Micron has broken all of the major support. It’s trading below all three moving day averages. Currently, it’s trading at -7.58% below the 20-day moving average, -12.11% below the 50-day moving average, and -41.13% below the 200-day moving average.

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The PowerShares Dynamic Semiconductors Portfolio (PSI) invests 5.39% of its holdings in Micron. PSI uses a quantitative model to select and weight semiconductor companies. PSI’s YTD price movement was -7.35% as of September 30, 2015. The VanEck Vectors Semiconductor ETF (SMH) invests 3.70% of its holdings in Micron.

Micron’s competitors and their market caps are:

  • Intel (INTC) – $142.62 billion
  • IBM (IBM) – $140.65 billion
  • SanDisk (SNDK) – $11.43 billion
  • Rambus (RMBS) – $1.37 billion

Micron’s performance in 4Q15 and fiscal 2015

According to Micron’s 4Q15 earnings report, the net revenue was $3,600 million in 4Q15—a fall of 6.56% on a quarterly basis. As a percentage of sales, the cost of goods sold fell by 4.41% in 4Q15. The gross profit fell to $970 million in 4Q15—a fall of 19.30% compared to the gross profit of $1,202 million in 3Q15. The cash and cash equivalents and long-term marketable investments fell by 27.55% and 14.45% in 4Q15.

In 4Q15, some of Micron’s key activities are:

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  • Micron Technology announced a new encryption of enhanced SSD (solid state drive) for read-centric data center workloads, accelerating the transition from legacy HDDs (hard disk drives) to higher-performance, flash-based storage.
  • Intel and Micron Technology launched 3D Xpoint technology—a non-volatile memory that has the potential to revolutionize any device, application, or service that benefits from fast access to large sets of data.
  • The company announced a new portfolio of SAS SSDs that are work overload-optimized for customers demanding continuous availability of enterprise applications like data analytics, financial transactions, and media streaming.

In fiscal 2015, the company reported net revenue of $16,192 million—a fall of 1.01% compared to net revenue of $16,358 million in fiscal 2014. The net income and EPS (earnings per share) fell to $2,899 million and $2.47 per share—a fall of 4.79% and 2.75% in fiscal 2015. The current ratio and debt-to-equity ratio rose by 3.28% and 11.11%, respectively.

About Micron

Micron Technology is a well-established brand in designing and building advanced semiconductor systems. Micron provides the best silicon-to-semiconductor solutions including DRAM, NAND, and NOR Flash memory. Its memory solutions give innovative computing, consumer, enterprise storage, networking, mobile, embedded, and automotive applications.

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