NEW YORK (TheStreet) -- Micron Technology (MU) - Get Report stock is increasing 2.58% to $10.75 in after-hours trading on Wednesday after the data storage manufacturer reported a smaller-than-anticipated loss for the fiscal 2016 second quarter. Revenue fell short of estimates.
The Boise, ID-based company posted a net loss of 5 cents per share for the quarter ended March 3, while analysts estimated a loss 8 cents per share.
Revenue declined 30% year-over-year to $2.93 billion for the latest quarter, missing estimates of $3.05 billion because of lower dynamic random access memory (DRAM) average selling prices and sales volume.
"Although we continue to navigate challenging market conditions, we are on track with deploying our advanced DRAM and NAND technologies and improving our cost structure," CEO Mark Durcan said in a statement. "As a result, we expect to significantly improve our competitive position as we move through the second half of 2016 and beyond."
Also, the company issued disappointing fiscal 2016 third quarter guidance.
Micron expects to deliver a loss of 5 cents to 12 cents per share and revenue between $2.8 billion and $3.1 billion. Wall Street was anticipating earnings of 4 cents per share on revenue of $3.2 billion for the quarter.
Separately, Micron Technology has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures, and its weaknesses, including feeble earnings per share growth, deteriorating net income and weak operating cash flow.
You can view the full analysis from the report here: MU
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