Micron Technology (MU) Tumbles on Q4 Earnings

Tickers in this article: MU

NEW YORK (TheStreet) -- Chipmaker Micron Technology  shares shed 8.6% in Friday trading after posting fourth-quarter earnings a day earlier. Net income for the period ended Aug. 29 was $1.71 billion, or $1.51 a share, compared with a net loss of $243 million, or 24 cents a share, for the year-ago quarter.

Profits were less than hoped for as the company has seen exponential growth in the year to date, in part due to a rise in chip prices and a shortage of dynamic random-access memory (DRAM) chips.

Also depressing share prices, Wells Fargo downgraded its rating to "underperform" from "market perform" on Friday.

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 revenue growth, solid stock price performance, compelling growth in net income, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Written by Keris Alison Lahiff.