Why Is Micron (MU) Down 2.8% Since Last Earnings Report?

Core Viewpoint - Micron Technology reported strong fourth-quarter results for fiscal 2024, exceeding earnings and revenue estimates, driven by robust demand for AI products and improved pricing for DRAM and NAND [2][3]. Financial Performance - Micron's non-GAAP EPS for Q4 was $1.18, surpassing the consensus estimate of $1.10 and significantly improving from a loss of $1.07 per share in the same quarter last year [2]. - Quarterly revenues reached $7.75 billion, a 93% increase year-over-year and a 14% increase sequentially, exceeding the Zacks Consensus Estimate of $7.64 billion [2][4]. - The non-GAAP gross profit was $2.83 billion, with a gross margin of 36.5%, a significant improvement from a gross loss of $366 million in the previous year [6][7]. Revenue Breakdown - DRAM revenues were $5.33 billion, accounting for 69% of total revenues, up 93% year-over-year and 14% sequentially [4]. - NAND revenues reached $2.37 billion, representing 31% of total revenues, increasing 96% year-over-year and 15% sequentially [4][5]. - The Computing and Networking Business Unit generated $3.02 billion, a 152% increase from the previous year, while the Mobile Business Unit saw revenues of $1.88 billion, up 55% year-over-year [4][5]. Cash Flow and Balance Sheet - Micron ended the quarter with cash and investments of $9.16 billion and total liquidity of $11.7 billion [8]. - The company generated an operating cash flow of $3.41 billion and reported an adjusted free cash flow of $323 million after capital expenditures of $3.1 billion [8]. Future Outlook - For Q1 of fiscal 2025, Micron anticipates revenues of $8.70 billion and a non-GAAP gross margin of 39.5% [9]. - There has been an upward trend in estimates revisions for Micron, indicating positive sentiment among investors [10][12].