(Micron Technology article updated with analyst commentary and closing share price of Micron stock.)
NEW YORK ( TheStreet) -- Shares of Micron Technology (MU) have ended sharply lower Tuesday as investors get cold feet over its fourth-quarter outlook.
Micron stock finished Tuesday's trading session down 13.5% to $8.67.
On Monday, Micron reported net income of $939 million, or 92 cents a share, on net sales of $2.29 billion, beating the consensus sales estimate of $2.12 billion. These figures surpass the net loss of $301 million, or 37 cents a share, on net sales of $1.11 billion in the year-ago period.
During the quarter, Micron saw a 10% increase in revenue from sales of DRAM (dynamic random access memory) products, compared with the second quarter, as the result of a 9% increase in average selling prices and slight increase in sales volume.Micron added that it recorded a gain of $488 million in connection with its acquisition of Swiss memory technologies company Numonyx. Still, some of the initial excitement over the company's results in the third quarter waned when executives said in a conference call that Micron's DRAM growth could be flat or just slightly higher in the fourth quarter. "I think the downward pressure on the stock is largely due to investors concerns that gross in DRAM may be slowing," Wedbush Securities analyst Betsy Van Hees said.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV