In a press release, Micron said it repurchased about $26 million in aggregate principal amount of its $1.875% Convertible Senior Notes due 2013 for $64 million in cash. The company also repurchased about $100 million in aggregate principal amount of its 2.375% Convertible Senior Notes due for $249 million in cash, and about $38 million in aggregate principal amount of its 3.125% Convertible Senior Notes due 2032 for $93 million in cash. All repurchases will complete by Jan. 28, 2014, according to the company.
The repurchases "reduced the dilutive effect of our existing convertible notes," Micron vice president and CFO Ron Foster said. "We eliminated approximately 10 million shares from our current dilutive share count, assuming a $23 stock price, and reduced the outstanding principal amount of our debt by approximately $164 million. Since last November, we have reduced the dilutive effects of our convertible notes by approximately 52 million shares based on a $23 stock price."
TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MU's very impressive revenue growth greatly exceeded the industry average of 5.0%. Since the same quarter one year prior, revenues leaped by 120.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 211.11% and other important driving factors, this stock has surged by 203.85% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MICRON TECHNOLOGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MICRON TECHNOLOGY INC turned its bottom line around by earning $1.00 versus -$1.04 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.00).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 230.2% when compared to the same quarter one year prior, rising from -$275.00 million to $358.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: MU Ratings Report