Finally, Some Good News for Micron

Shares of memory chip manufacturer Micron Technology (NASDAQ: MU) tanked last Friday after the company's fiscal fourth-quarter report beat expectations but featured weak earnings guidance. While Micron's revenue is stabilizing, the company predicted a sequential decline in both gross margin and earnings per share for the first quarter of fiscal 2020. That outlook threw cold water on the idea that a robust recovery was right around the corner.

Micron's guidance suggests that it expects meaningful price declines to continue for at least the next quarter. However, recent data from market research firm TrendForce indicates that contract prices for PC DRAM chips have leveled off and are expected to remain unchanged for the next round of contracts.

That's good news for a company that saw its adjusted earnings per share crash 84% in the fourth quarter, although it does come with some caveats.

Source Fool.com