- Micron’s adjusted revenue for the first quarter was $8.71 billion, marking an 84% increase year-over-year, matching the estimates.
- Adjusted earnings per share (EPS) were at $1.79, contrasting a loss of 95 cents per share in the previous year, and slightly above the estimated $1.76.
- Adjusted gross margin significantly improved to 39.5% from 0.8% year-over-year, aligning with expectations.
- Adjusted operating income was $2.39 billion, up from a loss of $955 million in the previous year, surpassing the estimate of $2.34 billion.
- The adjusted operating income margin rose to 27.5%, improved from 20.2% year-over-year, exceeding the forecasted 27%.
- Cash flow from operations reached $3.24 billion, up from $1.40 billion the previous year, though below the projected $4.1 billion.
- Despite the financial improvements, shares dropped 4.7% in post-market trading to $99.00, with 33,189 shares traded.
- The stock has strong market support with 38 buy recommendations, 4 holds, and 1 sell.
Micron Technology on Smartkarma
Analysts on Smartkarma are expressing bullish sentiments on Micron Technology. Baptista Research delves into Micron’s fiscal fourth-quarter earnings call, highlighting key insights on customer demand shifts and market dynamics, underlining both positive developments and challenges. Douglas O’Laughlin emphasizes the resilience of memory companies like Micron in the midst of a perceived mid-memory cycle. Meanwhile, William Keating projects Micron’s robust financial performance, expecting a significant market share in the HBM segment by 2025. Vincent Fernando, CFA, provides a positive analysis, pointing out Micron’s improved margins, growth forecasts, and industry outlook upgrades, signaling a positive trajectory for Memory industry shares.
As Micron prepares for its upcoming results, analysts like Vincent Fernando, CFA, advocate for a long position on Micron, SK Hynix, and Silicon Motion, expecting a favorable outlook despite recent market challenges. Micron, along with other industry giants, faces pressures from reports of inventory liquidation and slowing demand, impacting stock prices. However, analysts anticipate Micron’s results to provide a critical update on the market, potentially influencing the industry’s direction moving forward.
A look at Micron Technology Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Micron Technology appears to have a positive long-term outlook. The company scores particularly well in Momentum with a score of 4, indicating strong upward growth potential. Additionally, Micron Technology shows resilience with a score of 3, suggesting the company’s ability to withstand market challenges. While the Value score is at 3, indicating fair value, the Growth and Dividend scores are at 2, reflecting areas that may have room for improvement.
Micron Technology, Inc. is a company specializing in the manufacturing and marketing of dynamic random access memory chips (DRAMs), very fast static random access memory chips (SRAMs), Flash Memory, other semiconductor components, and memory modules. With promising Momentum and Resilience scores, Micron Technology could be positioned for continued growth and stability in the long term, potentially making it an attractive investment option for those looking for a company with solid growth prospects.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
