Micron Electronics Drops After Profit Warning
Shares of
Micron Electronics
(MUEI)
dropped sharply a day after the company said fiscal first-quarter earnings will be well below Wall Street's estimates, primarily because of lower DRAM pricing in its
SpecTek
business.
Micron recently traded at $4.56, down 75 cents, or 14.2%, reaching a 52-week low in
Nasdaq
trading.
The computer products and services distributor now expects to report revenue of about $385 million to $400 million and earnings of 1 cent to 4 cents a share for the quarter ended Nov. 30. Analysts expect Micron Electronics to earn 11 cents a share for the quarter, according to
TheStreet Recommends
First Call/Thomson Financial
. The company will release results Dec. 20.
Micron Electronics, Nampa, Idaho, expects PC sales to come in $30 million to $35 million lower than previous estimates because of slower holiday consumer sales, echoing an announcement from sector heavyweight
Gateway
(GTW)
earlier this week.
Micron Electronics, which is about 61%-owned by
Micron Technology
(MU) - Get Micron Technology, Inc. Report
, indicated that overall PC operating results should still improve from last quarter, as lower operating expenses will mostly offset any effect from lower-than-expected PC sales.
