NEW YORK (TheStreet) -- Micron Technology (MU) - Get Report shares are tumbling 3.9% to $14.03 in after-hours trading on Tuesday immediately following the microchip manufacturer's first quarter 2016 earnings results, released after the markets close today.
Profit for the latest quarter came in at 24 cents a share, topping analysts' estimates by a penny.
Revenue of $3.35 billion however, were disappointing as analysts' expected $3.47 billion.
During the same quarter a year ago, the company earned 97 cents a share on revenue of $4.57 billion.
The company's sales were negatively impacted by a decline in DRAM average selling prices and non-volatile trade revenues.
Overall, demand for chips used in personal computers have been sluggish.
"While conditions in some market segments are challenging, we believe long-term industry fundamentals are healthy, and we remain focused on the deployment of our advanced DRAM and 3D NAND technologies and products," said CEO Mark Durcan.
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. TheStreet Ratings has this to say about the recommendation:
We rate MICRON TECHNOLOGY INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
You can view the full analysis from the report here: MU