NEW YORK (TheStreet) -- Shares of Micron Technology (MU) were pummeled in extended trades on Thursday after the chip maker's revenue fell well short of Wall Street expectations for its fiscal third quarter.
The Boise, Idaho-based company said it earned $75 million, or 7 cents a share, in the three months ended June 2 on revenue of $2.14 billion. The average estimate of analysts polled by Thomson Reuters was for a profit of 16 cents a share on revenue of $2.36 billion.
The stock was last quoted at $7.38, down 12.5%, on volume of 3.7 million, according to Nasdaq.com. Based on a regular session close at $8.43, the shares were up 1.8% so far in 2011.
Micron said its consolidated gross margin improved on a sequential basis to 22% in the latest quarter from 19% in the second quarter because of lower manufacturing costs. But sales of DRAM [dynamic random access memory] products were down 7% on a sequential basis because of declining volume, while sales of NAND Flash products fell 5% on a sequential basis because of weaker average selling prices.Wall Street was bullish on Micron ahead of the report with 18 of the 26 analysts covering the stock at either strong buy (10) or buy (8), and the 12-month median price target sitting at $14.
OracleShares of Oracle (ORCL) slumped in late trades after the database giant topped the average analysts' view for its fiscal fourth quarter but posted soft hardware sales. The stock was down 4% to $31.20 on volume of nearly 9 million in extended action. Year-to-date, the shares were up 4% based on Thursday's regular session close at $32.46. Despite the middling appreciation so far in 2011, Oracle still has plenty of fans on Wall Street with 34 of the 41 analysts covering the stock at strong buy (15) or buy (19), and the 12-month median price target at $38.
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