Micron tops Q2 results estimates; upbeat Q3 forecast signals demand boom

Overview

• U.S. memory chipmaker's fiscal Q2 revenue nearly tripled, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company raised quarterly dividend by 30%

Outlook

• Micron sees Q3 revenue at $33.5 bln ± $750 mln

• Company expects Q3 gross margin of approximately 81%

• Micron projects Q3 non-GAAP diluted EPS of $19.15 ± $0.40

Result Drivers

• STRONG DEMAND - Co said record results were driven by a strong demand environment across end markets

• TIGHT INDUSTRY SUPPLY - Co cited tight industry supply as a key factor supporting higher revenue and margins

• SEGMENT GROWTH - All business units saw sharp revenue and margin increases, with Mobile and Client reporting the highest gross margins at 79%

Company press release: ID:nGNXNT1rm

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 40 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Micron Technology Inc is $450.00, about 2.5% below its March 17 closing price of $461.69

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago

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