Micron Results Beat Top and Bottom Line Forecasts, Expects Even Stronger Fiscal 2022

Micron Technology (MU) yesterday presented its Q2 FY 2022 financial results. Micron shares are rising almost 4% in today’s premarket, following a 2.8% rise in the regular session to close at $82.05.

Founded in 1978, Micron Technology is a U.S. multinational corporation, one of the top 5 world manufacturers of semiconductor products. Known for its DRAM and NAND memory chips, flash memory, SSD drives, and CMOS sensors. Subsidiaries: SpekTec, Elpida Memory, Numonyx, Micron (Japan), Micron (Singapore), Displaytech Incorporated, Crucial.

Revenue was $7.79 billion versus $7.69 billion in the prior quarter and $6.24 billion in the same period last year. GAAP net income of $2.26 billion, or $2 per diluted share. Non-GAAP net income of $2.44 billion, or $2.14 per diluted share. Operating cash flow was $3.63 billion compared to $3.94 billion in the previous quarter and $3.06 billion in the same period last year. Adjusted free cash flow was $1.03 billion.

Micron repurchased approximately 4.8 million of its common stock for $408 million in Q2 FY 2022 and ended the quarter with cash and investments of $11.95 billion and a net cash position of $4.87 billion. Also, the company's BoD declared a quarterly dividend of $0.10 per share, payable in cash on April 26, 2022 to registered shareholders.

Looking forward, the Boise, Idaho-based microchip maker expects adjusted Q3 net income in the range of $2.36 to $2.56 a share on revenue of $8.5 billion to $8.9 billion. Consensus forecast is for $2.24 a share on revenue of $8.13 billion. During yesterday’s investors call, Micron CEO Sanjay Mehrotra said “We expect calendar 2022 industry bit demand growth to be in the mid-to-high “teens” for DRAM and at approximately 30% for NAND. We anticipate underlying demand in calendar 2022 to be led by data centers, ongoing adoption of 5G smartphones and continued strength in automotive and industrial markets.

Conclusion: Micron's excellent Q2 results beat forecasts in both revenue and margins. The company reliably leads the DRAM and NAND computer memory industry, and the product portfolio's earnings performance is improving after the Covid period fallout. With outstanding results in the first half of the year, Micron is on track for record revenue and consistent rise in profitability throughout the entire fiscal 2022.