MU Q4 2024 Earnings

Call Details

• Call Title: Micron Technology, Inc. Q4 2024 Earnings Call
• Date: September 25, 2024 at 9:30 PM UTC
• Management Team:
  • Satya Kumar (Director of Investor Relations)
  • Sanjay Mehrotra (President and CEO)
  • Mark Murphy (CFO)

Call Summary

Financial Performance

• Total fiscal Q4 revenue was approximately $7.8B, up 14% sequentially and up 93% year over year.
• Fiscal 2024 total revenue was $25.1B, up 62% year over year.
• Fiscal Q4 DRAM revenue was $5.3B, represented 69% of total revenue, and increased 14% sequentially with prices increasing in the mid-teens percentage range.
• Fiscal Q4 NAND revenue was $2.4B, represented 31% of total revenue, and increased 15% sequentially with shipments up in the high single-digit percentage range and prices up in the high single-digit percentage range.
• Consolidated gross margin for fiscal Q4 was 36.5%, improving over 8 percentage points sequentially.
• Non-GAAP diluted EPS for fiscal Q4 was $1.18 compared to $0.62 in the prior quarter and a loss of $1.07 in the year-ago quarter.
• Fiscal Q4 adjusted EBITDA was $3.7B, resulting in an EBITDA margin of 48%, and operating income was $1.7B with an operating margin of approximately 23%.
• Ending inventory for fiscal Q4 was $8.9B or 158 days, which was up three days from the prior quarter.

Guidance

• Fiscal Q1 revenue is guided to $8.7B, plus or minus $200M.
• Fiscal Q1 gross margin is guided to 39.5%, plus or minus 100 basis points.
• Fiscal Q1 operating expenses are guided to approximately $1,085,000,000, plus or minus $15,000,000, with full fiscal 2025 OPEX targeted to grow by a mid-teens percentage and be second-half weighted.
• Fiscal Q1 non-GAAP EPS is guided to $1.74 per share, plus or minus $0.08, based on a share count of approximately 1.14B shares.
• Fiscal Q1 capex is forecast to be approximately $3.5B sequentially higher, and fiscal 2025 CapEx is expected to be around the mid-30s percentage range of revenue.
• Fiscal Q1 and fiscal 2025 non-GAAP tax rate is estimated to be in the mid-teens percent range.
• Days of inventory outstanding are expected to decline in fiscal 2025 and to approach the company target by the end of fiscal 2025.
• Gross margin improvement in fiscal Q1 is expected to be driven primarily by better pricing and favorable portfolio mix, including HBM contribution.