1 Red Flag and 1 Green Flag for Micron Technology
Micron Technology's (NASDAQ: MU) latest results for its fiscal third quarter, which were released on June 30, turned out to be a shocker as the company's guidance was way behind expectations.
Micron's earnings and revenue for the three months ending on June 2 increased nicely year over year, but its outlook was proof that its days of rapid growth are now in the rearview mirror. The memory specialist expects to earn $1.63 per share this quarter on revenue of $7.2 billion. Wall Street was looking for $2.60 per share in earnings on $9.15 billion in sales. Those numbers would have resulted in decent year-over-year growth as Micron had reported $2.42 per share in adjusted earnings on $8.27 billion in revenue in the year-ago period.
The guidance, however, turned out to be dismal and sent investors panicking. Let's look closely at the reason why Micron's guidance was woeful, as this is a red flag that potential investors should be aware of.
Source Fool.com
