MU Earning Date, Transcript Summary & Report

Earnings Beat Expectations: Micron Technology, Inc. beats earnings expectations with reported EPS of $1.56, exceeding expectations of $1.43.

Record DRAM Revenue Growth: Data center DRAM revenue reached a new record in fiscal Q2, showcasing strong demand in this segment.

High-Bandwidth Memory Revenue Surge: HBM revenue grew more than 50% sequentially to over $1 billion, demonstrating strong execution and demand for high-bandwidth memory.

Low-Power DRAM Leadership: Micron remains the only company to ship low-power DRAM into the data center in high volume, highlighting its innovation and customer partnerships.

Record Revenue Expectations: The company expects fiscal Q3 revenue to be another record, driven by growth in both DRAM and NAND shipments.

DRAM Technology Innovation: Micron's 1-beta DRAM technology leads the industry, and the launch of 1-gamma node products shows continued innovation.

Idaho DRAM Fab Progress: The new DRAM fab in Idaho is on track to provide meaningful output starting in fiscal 2027, supported by CHIPS grant funding.

Power Efficiency Advantage: Micron's HBM3E technology delivers a 30% power reduction compared to competitors, enhancing its competitive edge.

Strong HBM Revenue Outlook: The company anticipates multibillion-dollar HBM revenue in fiscal 2025, indicating strong market demand.

NAND Market Leadership: Micron's leadership in QLC NAND supports the transition from HDD to NAND solutions in data centers, further solidifying its market position.

Data Center NAND Revenue Growth: The company expects to generate multiple billions in data center NAND revenue and grow its market share in calendar 2025.

High Demand for Mobile DRAM: Micron's mobile DRAM and UFS storage solutions are in high demand, with new products featured in flagship smartphones.

Automotive Memory Growth Potential: The automotive segment is seeing increased memory content per vehicle, positioning Micron well for future growth in this market.

Capital Investment Strategy: Micron's disciplined capital investments are focused on multiyear facility investments to support DRAM and HBM manufacturing.

Q2 Revenue Decline: Total fiscal Q2 revenue was approximately $8.1 billion, down 8% sequentially.

NAND Revenue Decline: Fiscal Q2 NAND revenue was $1.9 billion, down 17% sequentially, with prices decreasing in the high-teens percentage range.

Storage Revenue Decline: Revenue for the Storage business unit was $1.4 billion, down 20% sequentially, driven primarily by lower storage investments from data center customers.

Mobile Revenue Decline: Mobile business unit revenue was $1.1 billion, down 30% sequentially, as mobile customers continue to improve their inventory positions.

Gross Margin Decline: Consolidated gross margin for fiscal Q2 was 37.9%, down 160 basis points sequentially due primarily to pricing and consumer-oriented segments of the market, especially in NAND.

Operating Income and Margin: Operating income of $2 billion in fiscal Q2, resulting in an operating margin of 24.9%, which was down approximately 260 basis points sequentially.

Q2 Adjusted EBITDA Performance: Fiscal Q2 adjusted EBITDA was $4.1 billion, resulting in an EBITDA margin of 50.7%, up 10 basis points sequentially but down from previous quarters.

Inventory Days Increase: Fiscal Q2 ending inventory was $9 billion or 158 days, up 9 days from the prior quarter.

Gross Margin Outlook: We expect sequentially lower fiscal Q3 gross margin, which includes the effects of higher consumer-oriented volumes.

NAND Underutilization Impact: NAND underutilization continues to weigh on gross margins.