Micron Technology, Inc. (MU) – Expect to be profitable only in 2025

Micron Technology, Inc. (MU) (Q3FY23)

Stock Performance: In the past 3 years, Micron Technology stock has given returns of 54%. The stock surged from ~$45.5 in FY20 to $69.9 in FY23. The stock price increased by 27% in past 1-year. The stock has a 52-week high of $74.77 and its 52-week low is $48.43. MU has a 50-day moving Avg. and 200-day moving Avg. of $65.86 and $61.32, respectively. The stock price showed an consolidation phase in past 3- months period and gave 1% returns.

Quarter Performance: Total fiscal Q3 revenue was approximately $3.8bn, up 2% sequentially and down 57% Y/Y. DRAM revenue was $2.7bn, representing 71% of total revenue, whereas, NAND revenue was $1bn, representing 27% of Micron’s total revenue.

The company had an operating loss of roughly $1.5bn, resulting in an operating margin of -39%, down from -56% in the prior quarter. The non-GAAP loss per share in Q3FY23 was $1.43, down from a loss per share of $1.91 in the prior quarter and EPS of $2.59 in the prior year.

Guidance: For Q4FY23, revenue is expected to be $3.9bn, (+/-) $200mn. Non-GAAP gross margin to be in the range of (10.5)%, (+/-) 2.5%; and Non-GAAP operating expenses to be approximately $845mn, (+/-) $15mn. GAAP diluted EPS is expected to be ($1.34), (+/-) $0.07. Non-GAAP diluted earnings is expected to be $(1.19), (+/-) $0.07 per share.

Highlights

The company is facing significant challenges due to the uncertain economic conditions in China, resulting in a decline in both profitability and revenues. Moving ahead, MU is keen to focus on long term profitability, MU is focused to record total addressable market in FY25 along with returning back to normalized level of profitability.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 33

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