Memory-chip maker Micron Technology (MU) late Monday reported fiscal first-quarter earnings that missed estimates while revenue edged by views. MU stock climbed in extended trading, nearing a buy point, as guidance came in above expectations.
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Fiscal Q1 2022 highlights
- Revenue of $7.69 billion versus $8.27 billion for the prior quarter and $5.77 billion for the same period last year.
- GAAP net income of $2.31 billion, or $2.04 per diluted share.
- Non-GAAP net income of $2.47 billion, or $2.16 per diluted share.
- Operating cash flow of $3.94 billion versus $3.88 billion for the prior quarter and $1.97 billion for the same period last year.
“Micron delivered solid fiscal first quarter results led by strong product portfolio momentum,” said Micron Technology President and CEO Sanjay Mehrotra. “We are now shipping our industry-leading DRAM and NAND technologies across major end markets, and we delivered new solutions to data center, client, mobile, graphics and automotive customers.
As powerful secular trends including 5G, AI, and EV adoption fuel demand growth, our technology leadership and world-class execution position us to create significant shareholder value in fiscal 2022 and beyond.”
Analysts had expected Micron earnings of $2.10 a share on sales of $7.68 billion, according to FactSet. The company in September issued guidance for the fiscal first quarter that badly missed estimates.
Investments in capital expenditures, net were $3.27 billion for the first quarter of 2022, which resulted in adjusted free cash flows of $671 million. Micron repurchased approximately 3.6 million shares of its common stock for $259 million during the first quarter of fiscal 2022 and ended the quarter with cash, marketable investments, and restricted cash of $11.48 billion, for a net cash position of $4.46 billion.
On December 17, 2021, Micron’s Board of Directors declared a quarterly dividend of $0.10 per share, payable in cash on January 18, 2022, to shareholders of record as of the close of business on January 3, 2022.
For the current quarter, Micron expects to earn an adjusted $1.95 a share on sales of $7.5 billion. Wall Street had predicted per-share earnings of $1.84 on sales of $7.29 billion.
Stock Action on Report
In extended trading on the stock market today, MU stock popped 6.7% to 87.56. The semiconductor stock was up 10% in 2021 coming into the Micron earnings report.
Financial Statement:
| MICRON TECHNOLOGY, INC. | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| (In millions, except per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
| 1st Qtr. | 4th Qtr. | 1st Qtr. | |||||||||
| December 2, 2021 |
September 2, 2021 |
December 3, 2020 |
|||||||||
| Revenue | $ | 7,687 | $ | 8,274 | $ | 5,773 | |||||
| Cost of goods sold | 4,122 | 4,362 | 4,037 | ||||||||
| Gross margin | 3,565 | 3,912 | 1,736 | ||||||||
| Research and development | 712 | 705 | 647 | ||||||||
| Selling, general, and administrative | 259 | 236 | 214 | ||||||||
| Restructure and asset impairments | 38 | 22 | 8 | ||||||||
| Other operating (income) expense, net | (75 | ) | (6 | ) | 1 | ||||||
| Operating income | 2,631 | 2,955 | 866 | ||||||||
| Interest income | 10 | 9 | 10 | ||||||||
| Interest expense | (45 | ) | (47 | ) | (48 | ) | |||||
| Other non-operating income (expense), net | (75 | ) | 19 | 13 | |||||||
| 2,521 | 2,936 | 841 | |||||||||
| Income tax (provision) benefit | (219 | ) | (230 | ) | (51 | ) | |||||
| Equity in net income (loss) of equity method investees | 4 | 14 | 13 | ||||||||
| Net income | $ | 2,306 | $ | 2,720 | $ | 803 | |||||
| Earnings per share | |||||||||||
| Basic | $ | 2.06 | $ | 2.42 | $ | 0.72 | |||||
| Diluted | 2.04 | 2.39 | 0.71 | ||||||||
| Number of shares used in per share calculations | |||||||||||
| Basic | 1,119 | 1,123 | 1,115 | ||||||||
| Diluted | 1,130 | 1,138 | 1,135 | ||||||||