We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Micron Technology (MU - Free Report) reported weaker-than-expected financial results for the second quarter of fiscal 2023. The company reported a non-GAAP loss of $1.91 per share, which was significantly higher than the Zacks Consensus Estimate of a loss of 67 cents. The bottom line compared unfavorably with the prior-year quarter’s earnings of $2.14 per share.
The quarterly revenues of Micron plunged 53% year over year to $3.69 billion, which missed the consensus mark of $3.76 billion. Rapidly weakening consumer demand and substantial customer inventory adjustments across end markets amid macroeconomic uncertainty were the main reasons behind the dismal quarterly performance.
Q2 Top-Line Details
DRAM (Dynamic Random Access Memory) revenues of $2.72 billion, accounting for 74% of the total revenues in the fiscal second quarter, declined 52% year over year and 4% sequentially. Bit shipments increased approximately in the mid-teens percentage sequentially, while the average selling price (ASP) plunged approximately 20% on a quarter-over-quarter basis.
Micron Technology, Inc. Price, Consensus and EPS Surprise
NAND revenues of $885 million, representing 24% of the total top line, were down 55% on a year-over-year basis and 20% quarter over quarter. While NAND ASP decreased in the mid-20 percentage sequentially, bit shipments increased in the mid-to-high-single-digit percent range.
Other revenues were 2% of total revenues of $86 million in the reported quarter.
Segment-wise, revenues of $1.38 billion from the Computing and Networking Business Unit plunged 60% from the year-ago quarter and 21% sequentially. Revenues of $945 million from the Mobile Business Unit declined 50% on a year-over-year basis but increased 44% on a quarter-over-quarter basis.
The Embedded Business Unit’s revenues logged in at $865 million, down 32% from the year-ago period and 14% from the previous quarter. Revenues from the Storage Business Unit, comprising solid-state drive NAND components, totaled $507 million, down 57% year over year and 25% sequentially.
Operating Details
For the second quarter, Micron posted a non-GAAP gross loss of $1.16 billion, while it reported a non-GAAP gross profit of $3.72 billion in the year-ago quarter and $934 million in the previous quarter. The non-GAAP gross margin of -31% reflects a significant decline from the year-ago quarter’s 48% and 23% in the first quarter of fiscal 2023.
Micron’s non-GAAP operating loss of $2.08 billion compared unfavorably with the non-GAAP operating income of $2.75 billion in the prior-year quarter. In the first quarter of fiscal 2023, the company reported a non-GAAP operating loss of $65 million.
The non-GAAP operating margin came in at negative 56%, while it posted an operating margin of positive 35% in the year-ago quarter. In the first quarter of fiscal 2023, it posted a non-GAAP operating margin of negative 2%.
Non-GAAP operating expenses came in at $916 million compared with the previous quarter’s $999 million and the year-ago quarter’s $974 million.
Balance Sheet & Cash Flow
Micron exited the reported quarter with cash and investments of $12.12 billion compared with the $12.08 billion recorded at the end of the prior quarter. It ended the quarter with total liquidity of $14.6 billion, flat when compared with the first quarter.
Micron’s long-term debt as of Mar 2, 2023 was $12.04 billion compared with the $10.09 billion witnessed at the end of the fiscal 2023 first quarter.
The company generated operating cash flow of $343 million in the fiscal second quarter and $1.29 billion in the first half of fiscal 2023. In the second quarter, it generated adjusted free cash flow of negative $1.8 billion.
Micron announced that its board approved a quarterly cash dividend of 115 cents per share, payable on Apr 25, 2023 to shareholders of record as of Apr 10. However, the company temporarily suspended its share buyback plan in the second quarter of fiscal 2023.
Outlook
Micron provided guidance for the third quarter of fiscal 2023. The company anticipates revenues of $3.70 billion (+/-$200 million) for the fiscal third quarter. The Zacks Consensus Estimate stands at $3.78 billion.
For the fiscal third quarter, MU projects a non-GAAP gross margin of -21% (+/-250 basis points). Operating expenses on a non-GAAP basis are estimated at $900 million (+/-$15 million).
The adjusted loss per share is anticipated at $1.58 (+/-7 cents). The consensus mark is pegged at a loss of 92 cents per share.
Zacks Rank & Stocks to Consider
Micron currently carries a Zacks Rank #4 (Sell). The stock has plunged 25.1% over the past year.
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from 16 cents 30 days ago. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past seven days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have plunged 10.4% in the trailing 12 months.
The Zacks Consensus Estimate for Aspen Technology's third-quarter fiscal 2023 earnings has remained unchanged at $1.66 per share in the past 60 days. For fiscal 2023, earnings estimates have been revised northward by 2 cents to $7.10 per share in the past 60 days.
Aspen Technology’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 5.2%. Shares of AZPN have rallied 27.3% over the past year.
The Zacks Consensus Estimate for Fortinet's first-quarter 2023 earnings has been revised northward by a penny to 28 cents per share over the past 60 days. For 2023, earnings estimates have moved upward by 5 cents to $1.40 per share in the past 60 days.
Fortinet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 15.8%. Shares of FTNT have declined 6% in the trailing 12 months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Micron (MU) Posts Wider Q2 Loss Amid Weak Memory Chip Demand
Micron Technology (MU - Free Report) reported weaker-than-expected financial results for the second quarter of fiscal 2023. The company reported a non-GAAP loss of $1.91 per share, which was significantly higher than the Zacks Consensus Estimate of a loss of 67 cents. The bottom line compared unfavorably with the prior-year quarter’s earnings of $2.14 per share.
The quarterly revenues of Micron plunged 53% year over year to $3.69 billion, which missed the consensus mark of $3.76 billion. Rapidly weakening consumer demand and substantial customer inventory adjustments across end markets amid macroeconomic uncertainty were the main reasons behind the dismal quarterly performance.
Q2 Top-Line Details
DRAM (Dynamic Random Access Memory) revenues of $2.72 billion, accounting for 74% of the total revenues in the fiscal second quarter, declined 52% year over year and 4% sequentially. Bit shipments increased approximately in the mid-teens percentage sequentially, while the average selling price (ASP) plunged approximately 20% on a quarter-over-quarter basis.
Micron Technology, Inc. Price, Consensus and EPS Surprise
Micron Technology, Inc. price-consensus-eps-surprise-chart | Micron Technology, Inc. Quote
NAND revenues of $885 million, representing 24% of the total top line, were down 55% on a year-over-year basis and 20% quarter over quarter. While NAND ASP decreased in the mid-20 percentage sequentially, bit shipments increased in the mid-to-high-single-digit percent range.
Other revenues were 2% of total revenues of $86 million in the reported quarter.
Segment-wise, revenues of $1.38 billion from the Computing and Networking Business Unit plunged 60% from the year-ago quarter and 21% sequentially. Revenues of $945 million from the Mobile Business Unit declined 50% on a year-over-year basis but increased 44% on a quarter-over-quarter basis.
The Embedded Business Unit’s revenues logged in at $865 million, down 32% from the year-ago period and 14% from the previous quarter. Revenues from the Storage Business Unit, comprising solid-state drive NAND components, totaled $507 million, down 57% year over year and 25% sequentially.
Operating Details
For the second quarter, Micron posted a non-GAAP gross loss of $1.16 billion, while it reported a non-GAAP gross profit of $3.72 billion in the year-ago quarter and $934 million in the previous quarter. The non-GAAP gross margin of -31% reflects a significant decline from the year-ago quarter’s 48% and 23% in the first quarter of fiscal 2023.
Micron’s non-GAAP operating loss of $2.08 billion compared unfavorably with the non-GAAP operating income of $2.75 billion in the prior-year quarter. In the first quarter of fiscal 2023, the company reported a non-GAAP operating loss of $65 million.
The non-GAAP operating margin came in at negative 56%, while it posted an operating margin of positive 35% in the year-ago quarter. In the first quarter of fiscal 2023, it posted a non-GAAP operating margin of negative 2%.
Non-GAAP operating expenses came in at $916 million compared with the previous quarter’s $999 million and the year-ago quarter’s $974 million.
Balance Sheet & Cash Flow
Micron exited the reported quarter with cash and investments of $12.12 billion compared with the $12.08 billion recorded at the end of the prior quarter. It ended the quarter with total liquidity of $14.6 billion, flat when compared with the first quarter.
Micron’s long-term debt as of Mar 2, 2023 was $12.04 billion compared with the $10.09 billion witnessed at the end of the fiscal 2023 first quarter.
The company generated operating cash flow of $343 million in the fiscal second quarter and $1.29 billion in the first half of fiscal 2023. In the second quarter, it generated adjusted free cash flow of negative $1.8 billion.
Micron announced that its board approved a quarterly cash dividend of 115 cents per share, payable on Apr 25, 2023 to shareholders of record as of Apr 10. However, the company temporarily suspended its share buyback plan in the second quarter of fiscal 2023.
Outlook
Micron provided guidance for the third quarter of fiscal 2023. The company anticipates revenues of $3.70 billion (+/-$200 million) for the fiscal third quarter. The Zacks Consensus Estimate stands at $3.78 billion.
For the fiscal third quarter, MU projects a non-GAAP gross margin of -21% (+/-250 basis points). Operating expenses on a non-GAAP basis are estimated at $900 million (+/-$15 million).
The adjusted loss per share is anticipated at $1.58 (+/-7 cents). The consensus mark is pegged at a loss of 92 cents per share.
Zacks Rank & Stocks to Consider
Micron currently carries a Zacks Rank #4 (Sell). The stock has plunged 25.1% over the past year.
Some better-ranked stocks in the broader technology sector are Wix.com (WIX - Free Report) , Aspen Technology (AZPN - Free Report) and Fortinet (FTNT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from 16 cents 30 days ago. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past seven days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have plunged 10.4% in the trailing 12 months.
The Zacks Consensus Estimate for Aspen Technology's third-quarter fiscal 2023 earnings has remained unchanged at $1.66 per share in the past 60 days. For fiscal 2023, earnings estimates have been revised northward by 2 cents to $7.10 per share in the past 60 days.
Aspen Technology’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 5.2%. Shares of AZPN have rallied 27.3% over the past year.
The Zacks Consensus Estimate for Fortinet's first-quarter 2023 earnings has been revised northward by a penny to 28 cents per share over the past 60 days. For 2023, earnings estimates have moved upward by 5 cents to $1.40 per share in the past 60 days.
Fortinet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 15.8%. Shares of FTNT have declined 6% in the trailing 12 months.