Micron Technology (NASDAQ:MU)
The fiscal year of Micron Technology (NASDAQ:MU) concluded on a downbeat note due to lower profits and sales in the company’s fourth quarter compared to the same period in the prior year. Non-GAAP profits per share (EPS) for the fiscal fourth quarter dropped 40% year over year, to $1.45. The final result exceeded the Zacks Consensus Estimate. of $1.40. But despite it, Micron stock surged in the market.
The Zacks Consensus Estimate was for $6.88 billion, so the quarterly total of $6.64 billion was lower than expected. Rapidly dwindling consumer demand and significant customer inventory changes across end markets were the primary causes of the poor quarterly performance. Regardless of the bad quarterly report, Micron stock soared.
Details on Revenue in Q4
The fiscal third quarter had a 21% year-over-year and 23% sequential drop in dynamic random access memory sales to $4.81 billion (72% of total revenues). In the most recent quarter, shipments were down about 10% sequentially. The average selling price (ASP) was down by the low teen percentage.
Sales of NAND chips, which accounted for around 25% of overall sales, were $1.69 billion in the most recent quarter, down 14% year over year and 26% sequentially. However, bit shipments fell by the low ’20s percentage range, while NAND ASP fell sequentially by the mid to high-single digits.
Computing and networking had a 23% drop in sales year over year, and a 25% drop quarter over quarter, to $2.93 billion. The Mobile Business Unit’s $1.51 billion revenue was down year-over-year (20%) and sequentially (23%).
The Embedded Business Unit brought in $1.3 billion in sales, which is down 4% year-over-year and 9% sequentially. Total Storage Business Unit revenues of $891 million, comprised chiefly of sales of NAND components for solid-state drives (SSDs), were down 26% year over year and 34% sequentially.
The non-GAAP gross profit for Micron fell to $2.68 billion, down 32.5% year and 34.7% from the previous quarter. Compared to the equivalent time last year and the third quarter of fiscal 2022, the non-GAAP gross margin has dropped significantly to 40%.
With a total of $1.66 billion, Micron stock non-GAAP operating income increased by 45.9% year-over-year and 47.1% quarter-over-quarter. Comparatively to the same quarter last year and the prior quarter, the non-GAAP operating margin dropped from 37% to 25%.
Micron stock is increasing despite the company reporting lower quarterly earnings and revenues due to sluggish demand.
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