Micron Technology, Inc. (NASDAQ:MU) announced its earnings and revenue for the fourth quarter that surpassed consensus forecast, indicating a relief for a market that has been hit by a decline in prices and demand.
However, the company projected its revenue for the current quarter below analysts’ estimates. MU is anticipating revenue in the range of $3.35 billion-$3.6 billion versus $3.73 billion estimated by analysts.
An analyst at Wedbush Securities, Betsy Van Hees said prices are under pressure, demand is uncertain and supply is ample. The question is when things are actually going to get well, Hees added.
The company said during its presentation that it anticipates the demand environment to improve and stabilize as it moves through calendar 2016.
Micron Technology reported revenue of $3.60 billion for the fourth quarter, down 14.8 percent from the same period last year. Analysts surveyed by Thomson Reuters I/B/E/S had predicted revenue of $3.55 billion.
The company makes DRAM and NAND flash memory chips. DRAM chips are mostly incorporated in PCs, while NAND chips are broadly used in handsets, cameras and other devices to store data such as music and pictures.
Last month, Gartner warned of a sharper decline in worldwide PC shipments in the current year. The research firm said worldwide PC sales would drop 7.3 percent in 2015, as compared to its earlier forecast of a 4.5 percent drop.
Micron (MU) reported its net earnings for the quarter plummeted 59 percent to $471 million, or 42 cents a share. On adjusted basis, the company posted earnings of 37 cents a share, beating analysts forecast of 32 cents a share.
The manufacturer of semiconductor devices is being pursued by Tsinghua Unigroup Ltd, based in China, according to reports. Tsinghua reportedly sent a proposal to buy Micron for $23 billion, though the deal has been troubled amid United States security concerns.
