The highly anticipated Micron earnings (since memory is the one place in the sector in the market where all those massive new bond sales are funding) are finally out and they painted a solid, if slightly mixed, picture compared to buyside bogeys.
As we said in our preview, what would matter today is not what the company did in Q4, but how it guided to Fiscal Q1 (ending next calendar quarter), and sure enough Q3 was solid across the board:
- Adjusted EPS $33.42, beating estimates of $31.83
- Adjusted revenue $54.23 billion vs. $11.32 billion y/y, and beating estimates of $51.49 billion
- Core Data Center revenue $18.00 billion, beating estimates of $11.34 billion
- Cloud Memory revenue $16.28 billion, beating estimate $15.14 billion
- Mobile and Client Revenue $13.11 billion vs. $3.76 billion y/y, beating estimates of $12.95 billion
- Automotive and Embedded rev. $6.82 billion, beating estimates of $4.73 billion
- Adjusted gross margin 87% vs. 45.7% y/y, beating estimates of 86.2%
- Adjusted operating income $44.64 billion vs. $3.96 billion y/y, beating estimates of $42.75 billion
- Adjusted operating income margin 82.3% vs. 35% y/y, missing estimates of 82.8%
- Adjusted operating expenses $2.57 billion vs. $1.21 billion y/y, beating estimates of $1.68 billion
- R&D expenses $1.91 billion, +83% y/y, estimate $1.38 billion
- Adjusted operating expenses $2.57 billion vs. $1.21 billion y/y, estimate $1.68 billion
- Cash flow from operations $43.97 billion vs
