Micron Technology, Inc. Q3 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Key Takeaways

  • Micron delivered results above the high end of guidance for revenue, gross margin, and EPS.
  • Strong pricing and improved product mix drove profitability across all end markets.
  • AI-driven demand, especially in data center, significantly boosted results.
  • HBM (High Bandwidth Memory) revenue exceeded $100 million in its first quarter of ramp, and is sold out for 2024 and 2025.
  • Micron expects fiscal 2025 revenue to reach a new company record with significantly higher profitability.

Financial Results (Fiscal Q3 2024)

  • Revenue: $6.8 billion (up 17% QoQ and 82% YoY).
  • DRAM revenue: $4.7 billion (69% of total; up 13% QoQ; prices +20%).
  • NAND revenue: $2.1 billion (30% of total; up 32% QoQ; prices +20%).
  • Gross margin: 28% (up ~8 percentage points QoQ). Excluding prior inventory adjustments, underlying improvement would have been ~15 points.
  • Operating income: $941 million (14% margin; +10 points QoQ).
  • EPS (non-GAAP): $0.62 (up from $0.42 QoQ; up from $(1.43) YoY).
  • Free cash flow: $425 million.
  • Inventory: $8.5 billion (155 days; down 5 days QoQ).

Q4 2024 Outlook

  • Revenue: $7.6 billion ± $200 million.
  • Gross margin: 34.5% ± 100 bps.
  • EPS: $1.08 ± $0.08.
  • DRAM shipments: roughly flat QoQ.
  • NAND shipments: up slightly QoQ.

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Operator: Thank you for standing by, and welcome to Micron Technology's Fiscal Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now, I'd like to introduce your host for today's program, Satya Kumar, Investor Relations. Please go ahead, sir. Satya Kumar: Thank you, and welcome to Micron Technology's fiscal third quarter 2024 financial conference call. On the call with me today are Sanjay Mehrotra, our President and CEO; and Mark Murphy, our CFO. Today's call is being webcast from our Investor Relations site at investors.micron.com, including audio and slides. In addition, the press release detailing our quarterly results has been posted on the website, along with the prepared remarks for this call. Today's discussion of financial results is presented on a non-GAAP financial basis unless otherwise specified. A reconciliation of GAAP to non-GAAP financial measures can be found on our website. We encourage you to visit our website at micron.com throughout the quarter for the most current information on the Company, including information on financial conferences that we may be attending. You can also follow us on X at MicronTech. As a reminder, the matters we are discussing today include forward-looking statements regarding market demand and supply, market and pricing trends and drivers, the impact of new technologies such as AI, product ramp plans and market position, our expected results and guida

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