Micron (MU) Stock Falls on Q3 Revenue, Jim Cramer's Take
NEW YORK (TheStreet) -- Shares of Micron Technology (MU) - Get Report are diving 8.83% to $12.55 on heavy trading volume late Friday morning after the Boise, ID-based company reported disappointing revenue for the 2016 fiscal third quarter.
After yesterday's closing bell, the semiconductor systems company said revenue plunged 25% to $2.9 billion year-over-year. This fell short of analysts' forecasts of $2.96 billion.
Micron posted a loss of 8 cents per share, which beat analysts' estimates for a loss of 9 cents per share. But it was wider than the loss of 5 cents per share that the company reported last year.
Additionally, the company said it expects to save more than $300 million in fiscal 2017 with cost cutting initiatives, including job cuts.
TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning that Micron's third quarter "conference call was such a downer." Cramer said the company was too negative.
But Cramer added he is "not giving up on the stock."
About 41.78 million of the company's shares changed hands so far today vs. its average volume of 31.13 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.
But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MU