Micron’s stock has jumped 17.8% since its last earnings report, raising questions about future performance and market reactions.
Boise: So, it’s been about a month since Micron’s last earnings report, and guess what? Their shares have shot up by 17.8%. That’s pretty impressive, especially when you compare it to the S&P 500.
Now, the big question is whether this upward trend will keep going until the next earnings release or if Micron is due for a dip. Before we get into how investors and analysts are feeling lately, let’s quickly recap the last earnings report to see what’s been driving this surge.
In their first-quarter fiscal 2025 report, Micron posted earnings of $1.79 per share, which beat the Zacks Consensus Estimate by 2.3%. Last year, they had a loss of 95 cents per share, so this is a big turnaround.
The company’s revenues jumped a whopping 84.3% year over year to $8.71 billion, matching what analysts expected. A lot of this growth came from their DRAM segment, which brought in $6.4 billion, making up 73% of their total revenue. That’s an 87% increase from last year!
On the NAND side, they earned $2.2 billion, which is up 82% year over year but saw a slight dip from the previous quarter. They also had some smaller revenue streams, but overall, the numbers look solid.
When it comes to operating details, Micron reported a non-GAAP gross profit of $3.35 billion, a nice jump from the previous quarter. Their gross margin also improved significantly, going from a loss last year to a solid 39.5% this quarter.
As for their balance sheet, Micron ended the quarter with $7.58 billion in cash and investments. They generated $3.24 billion in operating cash flow, which is pretty good, and they spent $3.2 billion on capital expenditures.
Looking ahead, Micron expects revenues of around $7.90 billion for the next quarter, with a non-GAAP gross margin of about 38.5%. They’re projecting adjusted earnings per share of $1.43, which sounds promising.
However, it’s worth noting that estimates have been trending downward recently, with a consensus shift of -28.81%. Micron currently holds a Zacks Rank #3, which means they’re in a “Hold” position, suggesting we might see steady returns in the coming months.
In the same industry, Hewlett Packard Enterprise has also seen some gains, reporting revenues of $8.46 billion recently. They’re expected to post earnings of $0.50 per share for the current quarter, which is a slight increase from last year.
So, while Micron is riding high right now, it’ll be interesting to see how things play out as we approach the next earnings report.
