- Micron’s adjusted revenue for the second quarter was $5.82 billion, which is a 58% increase year on year.
- The adjusted revenue beat the estimated $5.35 billion.
- Adjusted earnings per share (EPS) stood at 42 cents, compared to a loss per share of $1.91 the previous year.
- This also surpassed the estimated loss per share of 24 cents.
- Adjusted operating income was $204 million, a significant turnaround from the loss of $2.08 billion reported the previous year.
- The estimated loss was $238.4 million, which Micron easily surpassed.
- Cash flow from operations was $1.22 billion, a large increase from $343 million year on year.
- However, this was lower than the estimated $2.14 billion.
- Research and development (R&D) expenses were $832 million, a 5.6% increase year on year.
- This was slightly higher than the estimated $799.5 million.
- Adjusted operating expenses were $959 million, a 4.7% increase year on year.
- This was also slightly higher than the estimated $950.2 million.
- Shares rose 4.5% in post-market trading to $100.59 with 171,543 shares traded.
- The company has 31 buys, 4 holds, and 2 sells.
Micron Technology on Smartkarma
Micron Technology, a major player in the memory chip industry, has been receiving significant coverage from top independent analysts on Smartkarma. According to Vincent Fernando, CFA, competition in the high bandwidth memory (HBM) space is heating up with Micron and Samsung’s latest HBM3e production announcements. This is good news for Micron, whose shares have rallied since the announcement. On the other hand, Taiwan’s Nanya Tech seems to be lagging behind in the competition.
In another report by Vincent Fernando, CFA, Microsoft’s new AI features for Windows require a minimum of 16GB of DRAM, prompting accelerated PC upgrades and a pulling forward of the demand for higher amounts of memory. This will drive demand for memory chips, benefiting companies like SK Hynix, Nanya Tech, and Micron. Meanwhile, Baptista Research believes that Micron is leading the charge in the future of DRAM and NAND technology, with a positive trajectory for pricing and financial performance in 2024.
William Keating also weighed in on Micron’s recent surprise settlement with Fujian Jinhua, a co-defendant in a five-year long trial with the US Department of Justice. This settlement may help smooth the path for Micron’s operations in China. Additionally, Micron’s earnings report for Q1FY24 exceeded analyst expectations, with a 16% year-over-year increase in revenue. However, Keating cautions that 2024 will still be a “recovery” year for the company. Overall, analysts on Smartkarma have a bullish sentiment towards Micron Technology.
A look at Micron Technology Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
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
Micron Technology, a leading manufacturer of memory chips and other semiconductor components, has received positive scores on the Smartkarma Smart Scores system. The company has been given a score of 3 for Value, indicating a strong outlook for its financial performance in the long term. Additionally, Micron Technology has received a score of 2 for Dividend, suggesting a stable and potentially growing dividend for its shareholders. While the company has received a score of 2 for Growth, indicating a moderate outlook for future growth, it has been given a score of 3 for Resilience, suggesting a strong ability to weather economic downturns. Most notably, Micron Technology has received a score of 5 for Momentum, indicating a high level of positive momentum and potential for future success.
Based on the Smartkarma Smart Scores, Micron Technology is well-positioned for long-term success. With a strong score of 3 for Value, the company is expected to perform well financially. Additionally, its scores of 2 for Dividend and 3 for Resilience suggest stability and resilience in the face of potential economic challenges. While the company has received a slightly lower score of 2 for Growth, it has been given a high score of 5 for Momentum, indicating strong positive momentum and potential for future growth. Overall, Micron Technology‘s Smart Scores paint a positive outlook for the company’s long-term performance and potential for success in the highly competitive semiconductor industry.
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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