- Micron’s adjusted revenue forecast for Q1 2025 is between $8.5 billion and $8.9 billion, surpassing the estimate of $8.32 billion.
- Adjusted earnings per share (EPS) for Q1 2025 are predicted to be between $1.66 and $1.82, higher than the estimate of $1.52.
- The company sees an adjusted gross margin of 38.5% to 40.5%, above the estimated 37.6%.
- Projected adjusted operating expenses for Q1 2025 are between $1.07 billion and $1.1 billion, lower than the estimate of $1.12 billion.
- Q4 2024 Results:
- Adjusted revenue reached $7.75 billion, a 93% increase year-over-year (y/y), beating the estimate of $7.66 billion.
- Adjusted EPS was $1.18 compared with a loss of $1.07 per share y/y, exceeding the estimate of $1.12.
- Adjusted gross margin improved to 36.5% from -9.1% y/y, surpassing the estimate of 34.7%.
- Adjusted operating income was $1.75 billion versus a loss of $1.21 billion y/y, above the estimate of $1.58 billion.
- Adjusted operating income margin stood at 22.5% compared to 30.1% y/y, better than the estimate of 21%.
- Cash flow from operations ballooned to $3.41 billion versus $249 million y/y, although slightly missing the estimate of $3.63 billion.
- R&D expenses were $903 million, a 26% increase y/y, above the estimate of $872.8 million.
- Adjusted operating expenses totaled $1.08 billion, a 28% increase y/y, in line with the estimate of $1.07 billion.
- Comments:
- Micron’s shares jumped 10% after the Q1 2025 revenue forecast topped estimates.
- Micron credits robust AI demand for driving the growth of its data center DRAM products.
- Company claims it is entering fiscal 2025 with the best competitive positioning in its history, forecasting record revenue and significantly improved profitability.
- Micron delivered 93% year-over-year revenue growth in Q4 2024, driven by AI demand.
- Shares rose by 11% in post-market trading to $105.93 with 1.74 million shares traded.
Micron Technology on Smartkarma
Analysts on Smartkarma are providing insightful coverage on Micron Technology. Vincent Fernando, CFA, suggests staying long on Micron, SK Hynix, and Silicon Motion ahead of Micron’s upcoming results, anticipating a positive memory outlook despite recent market challenges. Baptista Research delves into Micron’s strategic expansion into data center and AI markets, highlighting the company’s optimism fueled by strategic investments and high-margin products.
On the flip side, analyst Jim Handy presents a more cautious view, warning of potential market collapse due to double-ordering in the semiconductor industry. However, Vincent Fernando, CFA‘s analysis focuses on Micron’s industry implications, discussing the company’s competitive edge showcased at Computex and the potential surge in traditional DRAM prices driven by HBM DRAM demand.
A look at Micron Technology Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.4 |
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
According to Smartkarma Smart Scores, Micron Technology receives a moderate overall outlook for its long-term performance. While the company scores well in the areas of value and resilience with a score of 3 for each, its scores in dividend, growth, and momentum are lower at 2 each. Micron Technology, Inc., specializes in manufacturing and selling dynamic random access memory chips (DRAMs), very fast static random access memory chips (SRAMs), Flash Memory, and other semiconductor components. This mix of scores suggests that Micron Technology may provide good value and demonstrate resilience, but may face challenges in terms of growth, dividend payouts, and momentum in the future.
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.
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