Micron Technology Presented Convincing Quarterly Results Overshadowed by Overall Market Blues

Micron Technology Inc. (MU) presented financial results for the 3rd quarter of fiscal year 2022. As we know, Micron Technology is a U.S. transnational corporation, one of the top 5 world manufacturers of semiconductor products. The company is included in the NASDAQ-100 and S&P 500 indices. Just shortly before the publication, investors were overwhelmed by pretty bearish analyst notes from both Barclays and Citi. Both analysts were predicting the company to miss Q3 estimates and provide weak guidance. However, for the reported quarter, revenues were basically in-line with estimates, and non-GAAP earnings per share came in more than 10 cents above estimates. Total revenues were up 16.4% YoY while adjusted earnings soared from $1.88 to $2.59.

When looking at the current quarter, Micron anticipates Q4 revenue to be between $6.8 billion and $7.6 billion, with adjusted earnings per share to be between $1.43 and $1.83 per share. Analysts were expecting Micron to generate $9.05 billion in revenue and guide to adjusted earnings of $2.62 per share. After the release of the financial statements, the shares fell by -1.41% in the postmarket due to poor overall market sentiment. Let's look at the results of the company's work for the 3rd quarter of 2022.

Revenue was $8.64 billion compared to $7.79 billion in the previous quarter and $7.42 billion in the same period last year. GAAP net income was $2.63 billion, or $2.34 per diluted share. Non-GAAP net income was $2.94 billion, or $2.59 per diluted share.

Operating cash flow was $3.84 billion compared to $3.63 billion in the previous quarter and $3.56 billion in the same period last year. Adjusted free cash flow was $1.31 billion.

Micron repurchased approximately 13.8 million of its common stock for $981 million in Q3 FY 2022 and ended the quarter with $11.98 billion in cash and investments and a net cash position of $5.01 billion USD.

On June 30, 2022, the company's Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on July 26, 2022 to registered shareholders on July 11, 2022 when the register was closed.

Conclusion: Micron achieved record revenues in Q3 fiscal year by delivering on its targets. However, due to Covid and geopolitical impacts demand for products across the industry has been declining recently, and the company is taking all necessary steps to combat this problem in fiscal 2023. MU is confident in the long-term demand for memory and storage systems and is well positioned to deliver strong financial performance across economic cycles.