Micron falls after profits miss expectations, but firms remain upbeat

Micron (MU), which develops flash memory products, is retreating after reporting last night higher than expected sales and lower than expected profits for its third quarter. However, several analysts remain positive on the company's outlook. Micron said that its revenue growth was primarily generated by higher DRAM flash memory sales volumes. Margins, which were flat compared with the previous quarter, were pressured by lower NAND flash memory margins, the company added. However, Micron believes that new products it's developing, including solid-state drives for enterprises, will boost its margins in the future. A number of research firms maintained a positive outlook on Micron following the company's results. In a note to investors this morning, Wells Fargo wrote that Micron's "solid revenue dynamic" is far more important than its near-term margin weakness. The firm maintained a $10-$12 valuation range and an Outperform rating on the stock. Meanwhile, another research firm, Robert W. Baird, wrote that Micron's fundamentals continue to improve. The firm, which maintained an Outperform rating on the shares, believes the company is well positioned to benefit from growth trends in NAND flash memory and consolidation in the DRAM industry. In early trading, Micron fell 23c, or 3.76%, to $5.89. SanDisk (SNDK), which also develops flash memory products, gave back 1.23% to $37.01.