Micron Q3’2017 Earnings Report

Updated 7/4/2017 for Wednesday’s trading day

Headlines will declare: Micron Technology beats Q3’2017 earnings estimates

I highly reccomend that everyone listen to Micron’s Q3’2017 Financial Call

Micron thru Thursday’s (6/29/2017) close at $31.47 -0.77 (-2.39%)

After Hours: 31.51 +0.04 (0.13%)

I.  Micron metrics prior to the Financial Call Earnings Report

  • EPS(ttm)  0.56
  • Shares    1.11B
  • Mkt cap 35.45B
  • P/E 55.75
  • Beta 1.77
  • Inst. own 83%
  • Div/yield     –
  •  ——————

 

(1.c.td21) Chart #5 (above, daily, PP-Sup-Res) for Thursday (6/29/2017)

  •   MU $32.24 +0.58 (+1.83%) from Wednesday 6/28/2017
  • After Hours:  $32.36 +0.12 (+0.37%)
  • :: Pivot point 31.99
  • Support (s1) 31.69           Support (s2) 31.15
  • Resistance (r1) 32.53      Resistance (r2) 32.83
  • Simple Moving Average (Close 50):   $29.54   (up trend)
  • Simple Moving Average (Close 200):   $23.62   (up trend)
  • 52 week performance +148.19%    YTD performance +47.08%
  • Note: Micron’s intraday low Wed was 33c above the projection
  • ———————–

 

Related:  MICRON Technology Inc. (MU.O) (d-w-m) for Monday (7/3/2017) Also, for every trading day in the month of July 2017, Daily Pivot Points, Support, Resistance, Daily (and now: Weekly) ‘projected’ Highs, ‘projected’ Lows, and more, see:

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I listened to Micron’s Q3’2017 Earnings Report Conference Call. I intend to listen again.  The financials showed growing earnings in all of Micron’s business segments. Micron reported GAAP Revenue of $5.57 billion, with net income of $1.6 billion, or $1.40 per share. Adjusted, non-GAAP earnings per share came in at $1.62, above analysts’ consensus of $1.52 … after reporting a Q3’2016 loss of $79 million, or -$0.08 per share during the same period a year ago. Revenue for the quarter rose to $5.6 billion, up from $2.898 billion in the year earlier and just above analysts’ consensus of $5.4 billion.
Chief Executive Sanjay Mehrotra stated, “The global trends taking shape today, including machine learning and big data analytics, are exciting and create significant opportunities for Micron.”  Also: “We are focused on positioning the company to realize these opportunities by investing in technology and products while also strengthening our balance sheet.”
There have been those pointing to Micron’s trailing twelve month’s (ttm) Price to Earnings (P/E) ratio of approximately 50+, while ignoring Micron’s foward P/E, as well as improving metrics …  as an indication Micron was a sell or an overpriced short.
Well, Micron lowered the boom on them with notes like these:

  • Compute and Networking
  • Revenue from Cloud customers 4 times higher Y/Y
  • Increased Enterprise demand from analytics workloads
  • Successfully ramped GDDR5X to high-volume production
  • Mobile
  • Planning to introduce nearly 20 new 1x designs in next 12 months
  • Developing MCP and discrete NAND to address full range of smartphones 
  • Sampling 32-layer 3D NAND MCP and discrete eUFS and eMMC devices
  • Embedded
  • Record quarterly revenue in Auto, Consumer/Connected Home & Industrial 
  • Maintaining market share leadership position in Automotive 
  • Ongoing transition of non-automotive DRAM portfolio to 20nm designs
  • Storage
  • Record revenue driven by >30% Q/Q growth in SSDs
  • Sales to Cloud and Enterprise customers exceeded Client sales in SSDs 
  • OEM and Hyperscale customer qualifications underway for SATA drives

Looking back, Micron’s improving fundamentals including Micron paying down a Billion of debt … have progressed like this:

I. Micron’s Earnings Reports:

(1) FQ4’2016 Summary (as of 10/4/2016)

  • ** Revenue of $3.2 billion
  • ** Gross margin of 18%
  • ** GAAP net loss of $170 million;
  •              loss per share of $0.16
  • ** Non-GAAP loss of $56 million;
  •               loss per share of $0.05
  • ** Operating cash flow of $896 million

===============================================

(2) FQ1’2017 Earnings report: Summary

  • **Revenue of $3.97 billion
  • •**GAAP results
  • −Gross margin of 25.5%
  • Net income of $180 million
  • −Diluted earnings per share of $0.16
  • •**Non-GAAP results
  • −Gross margin of 26.0%
  • Net income of $335 million
  • −Diluted earnings per share of $0.32
  • **Operating cash flow of $1.14 billion
FQ2 2017 NON-GAAP foward guidance
  • Revenue $4.35 – $4.70 billion
  • Gross margin 31% – 34%
  • Operating expenses $590 – $640 million
  • Operating income $800 – $900 million
  • Diluted EPS* $0.58 – $0.68

———————————————

(3) FQ2 2017 Earnings report: Summary (as of 03/23/2017)

  • **Revenue of $4.65 billion
  • **GAAP results
  •   −Gross margin of 36.7%
  •   −Net income of $894 million
  •   −Diluted earnings per share of $0.77
  • **Non-GAAP results
  •   −Gross margin of 38.5%
  •   −Net income of $1.03 billion
  •   −Diluted earnings per share of $0.90
  • **Operating cash flow of $1.77 billion
FQ3’2017 Non-GAAP foward guidance
  • $5.20 – $5.60 billion
  • Gross margin 44% – 48%
  • Operating expenses $560 – $610 million
  • Operating income $1.8 – $2.0 billion
  • Diluted EPS* $1.43 – $1.57
  • * Based on 1,155 million diluted shares

———————————————

(4) FQ3’2017 Earnings report: Summary (as of 6/29/2017)

  • ** Revenue of $5.57 billion
  • •** GAAP results
  •   − Gross margin of 46.9%
  •   − Net income of $1.65 billion
  •   − Diluted earnings per share of $1.40
  • ** Non-GAAP results
  •   − Gross margin of 48.0%
  •   − Net income of $1.90 billion
  •   − Diluted earnings per share of $1.62
  • ** Operating cash flow of $2.41 billion
FQ4 2017 Non-GAAP foward guidance 6/29/2017
  • Revenue $5.70 – $6.10 billion
  • Gross margin 47% – 51%
  • Operating expenses $575 – $625 million
  • Operating income $2.20 – $2.40 billion
  • Diluted EPS* $1.73 – $1.87
  • *Based on 1,179 million diluted shares

———————————————
———————————————

II. Micron’s earnings on a ttm basis

  • Earnings (Ern)
  • Qtr’FYr, (Ern)GAAP, (Ern)non-GAAP
  • Q4’2016,  -$0.16, -$0.05
  • Q1’2017, +$0.16, +$0.32
  • Q2’2017, +$0.77, +$0.90
  • Q3’2017, +$1.40, +$1.62
  • q4’2017, +$1.55, +$1.80 (projections per Diluted EPS* $1.73 – $1.87)
  • ———————————————
  • Ern ttm: +$2.17, +$2.79
  • w/q4’17: +$3.88, +$4.64

 

(a)  and Micron’s abbreviated PE ratio table

  • Thursday 6/29/2017 close at $31.47, P/E (ttm)
  • (Ern)GAAP ……:      $31.47 / $2.17 = 14.50
  • (Ern)non-GAAP ..:  $31.47 / $2.79 = 11.28

(b)  taking Micron’s foward guidance of non-GAAP Diluted EPS* $1.73 – $1.87

  • P/E with Micron’s q4’2017 non-GAAP foward guidance:
  • (Ern)GAAP ……: $31.47 / $3.88 = 8.11
  • (Ern)non-GAAP ..: $31.47 / $4.64 = 6.78

 

 II. Nearly every time I read a Micron article, Micron is refered to as a DRAM, and NAND manufacturer, or a DRAM/NAND as a ‘commodity’ manufacturer …. but, Micron manufactures so much more, like:

  • Memory
  • DRAM
  • DDR4 SDRAM
  • DDR3 SDRAM
  • DDR2 SDRAM
  • DDR SDRAM
  • SDRAM
  • GDDR
  • RLDRAM Memory
  • LPDRAM
  • DRAM Modules
  • FBDIMM
  • RDIMM
  • VLP RDIMM
  • VLP UDIMM
  • UDIMM
  • SODIMM
  • SORDIMM
  • VLP Mini-DIMM
  • LRDIMM
  • Mini-DIMM
  • NVDIMM
  • NAND Flash
  • SLC NAND
  • MLC NAND
  • TLC NAND
  • Serial NAND
  • 3D NAND
  • Managed NAND
  • e-MMC
  • Embedded USB
  • Universal Flash Storage
  • NOR Flash
  • Parallel NOR Flash
  • Serial NOR Flash
  • Xccela™ Flash
  • Hybrid Memory Cube
  • Short-Reach HMC
  • Multichip Packages
  • e.MMC-Based MCP
  • NAND-Based MCP
  • NOR-Based MCP
  • UFS-Based MCP
  • Storage
  • Memory Cards
  • Solid State Drives
  • SSDs by Interface
  • SATA SSDs
  • SAS SSDs
  • PCIe SSDs
  • SSDs by Capacity
  • SSDs by Product Line
  • SSDs by Usage
  • Client SSD Storage
  • Enterprise SSD Storage
  • Automotive
  • Industrial
  • Advanced Solutions
  • 3D XPoint Technology
  • Pico Computing Solutions
  • Storage Platforms
  • Micron SolidScale
  • Micron Accelerated Solutions
  • VMWare vSAN Ready Node Solution
  • Ceph Storage Solution
  • NexentaEdge Solution

 

For more on what Micron Tech does, and can do, visit their home page  and explore, watch some of their videos …

 

   III.    Today’s trading looks like a convergence of several scenarios like: Fund “window dressing”, an ongoing sector rotation from Technology to Financials, and a blundered MarketWatch article on Micron’s earnings are collectively spoiling Micron’s great earnings report and foward guidance.  However, when the dust settles, and the computers (and people) do their homework this weekend, Micron’s pps, IMHO at this time,  has been effectively reset for a recovery rally during next week’s trading …  w/more homework in progress.
———————–

 

—  Monday, 6/26/2017   thru    Friday 6/30/2017  ——

 

  Hope the above Q3’2017 MICRON TECH ORD (MU.O) Financial Call information and calculations for Friday, 6/30/2017  helps your investing and trading planning today …

 

 

 

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