Top-line Crashes
The dismal bottom-line performance reflects a 42% fall in revenues to $4.87 billion. Analysts were looking for a faster decline. All the four business segments recorded a double-digit decline in revenues.
“Micron delivered fourth quarter results ahead of expectations, capping a fiscal 2019 in which we executed well in a challenging environment, significantly improved our competitive position, and returned cash to shareholders through share repurchases,” said CEO Sanjay Mehrotra.
Outlook
Looking ahead, the management expects revenues to be $5 billion, plus or minus $200 million, in the first quarter of 2010. The estimate for adjusted earnings is $0.46 per share, plus or minus seven cents. Unadjusted earnings are expected to be $0.42 per share, plus or minus seven cents. The company is looking for a gross margin of approximately 25.5% for the current quarter.
Stock Buyback
During the fiscal year ended August, the management repurchased shares for about $2.66 billion. While predicting an improvement in demand conditions in the coming months, the company cautioned about near-term macroeconomic and trade-related uncertainties.
Earlier this month, Micron’s shares climbed to the highest level in more than a year, continuing the recovery from the loss it suffered a few months ago. The stock, which gained about 50% so far this year, closed Thursday’s regular trading lower and continued to fall during the after-hours session immediately after the earnings announcement.