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Why Is Micron (MU) Up 17.8% Since Last Earnings Report?
MUMicron Technology(MU) ZACKS·2025-01-17 17:31

Earnings Performance - Micron reported Q1 fiscal 2025 earnings of 1.79pershare,beatingtheZacksConsensusEstimateby2.31.79 per share, beating the Zacks Consensus Estimate by 2.3% [2] - Revenues increased 84.3% year over year to 8.71 billion, matching the Zacks Consensus Estimate [2] - DRAM revenues of 6.4billionaccountedfor736.4 billion accounted for 73% of total revenues, increasing 87% year over year and 20% sequentially [3] - NAND revenues of 2.2 billion represented 26% of total revenues, up 82% year over year but down 5% quarter over quarter [3] - Other revenues were 68million,downfrom68 million, down from 69 million year over year but up from 59millionsequentially[4]BusinessSegmentPerformance−ComputeandNetworkingBusinessUnitrevenuessoared15359 million sequentially [4] Business Segment Performance - Compute and Networking Business Unit revenues soared 153% year over year and 46% sequentially to 4.4 billion [4] - Mobile Business Unit revenues jumped 16.3% year over year and 19% quarter over quarter to 1.5billion[4]−EmbeddedBusinessUnitrevenueswere1.5 billion [4] - Embedded Business Unit revenues were 1.1 billion, up 5.8% year over year but down 10% sequentially [5] - Storage Business Unit revenues totaled 1.7billion,up1601.7 billion, up 160% year over year and 3% sequentially [5] Operating Performance - Non-GAAP gross profit of 3.35 billion improved from 2.74billioninthepreviousquarter[6]−Non−GAAPgrossmarginof39.52.74 billion in the previous quarter [6] - Non-GAAP gross margin of 39.5% improved from 36.5% in the previous quarter and 0.8% in the year-ago quarter [6] - Non-GAAP operating income of 2.39 billion was significantly higher than 1.75millioninthepreviousquarterandalossof1.75 million in the previous quarter and a loss of 955 million in the year-ago quarter [7] - Non-GAAP operating margin of 27.5% improved from 22.5% in the previous quarter and negative 20.2% in the year-ago quarter [8] Financial Position - Cash and investments totaled 7.58billion,downfrom7.58 billion, down from 9.16 billion in the previous quarter [9] - Total liquidity remained flat at 11.2billionquarteroverquarter[9]−Totaldebtincreasedto11.2 billion quarter over quarter [9] - Total debt increased to 13.7 billion from 13.4billioninthepreviousquarter[10]−Operatingcashflowof13.4 billion in the previous quarter [10] - Operating cash flow of 3.24 billion and capital expenditure of 3.2billionresultedinadjustedfreecashflowof3.2 billion resulted in adjusted free cash flow of 112 million [10] Outlook - Micron anticipates Q2 fiscal 2025 revenues of 7.90billion(+/−7.90 billion (+/-200 million) [11] - Non-GAAP gross margin is projected at 38.5% (+/-100 basis points) [11] - Non-GAAP operating expenses are estimated at 1.10billion(+/−1.10 billion (+/-15 million) [11] - Adjusted EPS is anticipated to be 1.43(+/−10cents)[11]IndustryComparison−HewlettPackardEnterprise(HPE)reportedQ42024revenuesof1.43 (+/- 10 cents) [11] Industry Comparison - Hewlett Packard Enterprise (HPE) reported Q4 2024 revenues of 8.46 billion, up 15.1% year over year [15] - HPE's EPS of 0.58comparedto0.58 compared to 0.52 a year ago [15] - HPE is expected to post earnings of $0.50 per share for the current quarter, representing a year-over-year change of +4.2% [16] Estimate Revisions - Consensus estimate for Micron has shifted -28.81% over the past month [12] - Micron has a Zacks Rank 3 (Hold) based on the overall direction and magnitude of estimate revisions [14]