MU Q3 2022 Earnings

Call Details

• Call Title: Micron Technology, Inc. Q3 2022 Earnings Call
• Date: June 30, 2022 at 8:30 PM UTC
• Management Team:
  • Farhan Ahmad (Vice President, Investor Relations)
  • Sanjay Mehrotra (President and CEO)
  • Mark Murphy (Chief Financial Officer)
  • Sumit Sadana (Executive Vice President and Chief Business Officer)

Call Summary

Financial Performance

• Total fiscal Q3 revenue was $8.6B, up 11% sequentially and up 16% year-over-year.
• DRAM revenue was $6.3B, representing 73% of total revenue, and increased 10% sequentially and 15% year-over-year.
• NAND revenue was $2.3B, representing 26% of total revenue, and increased 17% sequentially and 26% year-over-year.
• Consolidated gross margin was 47.4%, down approximately 40 basis points sequentially.
• Operating income was $3.1B, resulting in a 36.4% operating margin, up approximately 110 basis points sequentially and up 450 basis points year-over-year.
• Adjusted EBITDA was approximately $5.0B, resulting in a 57.4% EBITDA margin, down approximately 40 basis points sequentially and up over 400 basis points year-over-year.
• GAAP diluted EPS was $2.59 for the quarter, up from $2.14 in fiscal Q2 and $1.88 in the year-ago quarter.
• Cash from operations was $3.8B, representing 44% of revenue, and free cash flow was $1.3B in the quarter.

Guidance

• Micron provided fiscal Q4 non-GAAP revenue guidance of $7.2B plus or minus $400M.
• Micron guided fiscal Q4 non-GAAP gross margin to 42.5% plus or minus 150 basis points.
• Micron guided fiscal Q4 operating expenses to approximately $1.05B plus or minus $25M and a non-GAAP tax rate of approximately 9%.
• Micron expects fiscal Q4 EPS of $1.63 plus or minus $0.20 based on roughly 1.13B diluted shares.
• The company expects sequential shipments to be down for both DRAM and NAND in fiscal Q4.
• Micron stated it will maintain pricing discipline and will walk away from business that does not meet pricing objectives.
• Micron expects the impact of OPEX and CAPEX discipline to be limited in fiscal Q4 and to become more material in fiscal 2023.
• Micron plans to use inventory as a buffer and to supply part of the market demand in fiscal 2023 while reducing wafer fab equipment (WFE) capex year over year versus prior plans.