Why Is Micron (MU) Up 17.8% Since Last Earnings Report?

Earnings Performance - Micron reported Q1 fiscal 2025 earnings of $1.79 per share, beating the Zacks Consensus Estimate by 2.3% [2] - Revenues increased 84.3% year over year to $8.71 billion, matching the Zacks Consensus Estimate [2] - DRAM revenues of $6.4 billion accounted for 73% of total revenues, increasing 87% year over year and 20% sequentially [3] - NAND revenues of $2.2 billion represented 26% of total revenues, up 82% year over year but down 5% quarter over quarter [3] - Other revenues were $68 million, down from $69 million year over year but up from $59 million sequentially [4] Business Segment Performance - Compute and Networking Business Unit revenues soared 153% year over year and 46% sequentially to $4.4 billion [4] - Mobile Business Unit revenues jumped 16.3% year over year and 19% quarter over quarter to $1.5 billion [4] - Embedded Business Unit revenues were $1.1 billion, up 5.8% year over year but down 10% sequentially [5] - Storage Business Unit revenues totaled $1.7 billion, up 160% year over year and 3% sequentially [5] Operating Performance - Non-GAAP gross profit of $3.35 billion improved from $2.74 billion in the previous quarter [6] - Non-GAAP gross margin of 39.5% improved from 36.5% in the previous quarter and 0.8% in the year-ago quarter [6] - Non-GAAP operating income of $2.39 billion was significantly higher than $1.75 million in the previous quarter and a loss of $955 million in the year-ago quarter [7] - Non-GAAP operating margin of 27.5% improved from 22.5% in the previous quarter and negative 20.2% in the year-ago quarter [8] Financial Position - Cash and investments totaled $7.58 billion, down from $9.16 billion in the previous quarter [9] - Total liquidity remained flat at $11.2 billion quarter over quarter [9] - Total debt increased to $13.7 billion from $13.4 billion in the previous quarter [10] - Operating cash flow of $3.24 billion and capital expenditure of $3.2 billion resulted in adjusted free cash flow of $112 million [10] Outlook - Micron anticipates Q2 fiscal 2025 revenues of $7.90 billion (+/-$200 million) [11] - Non-GAAP gross margin is projected at 38.5% (+/-100 basis points) [11] - Non-GAAP operating expenses are estimated at $1.10 billion (+/-$15 million) [11] - Adjusted EPS is anticipated to be $1.43 (+/- 10 cents) [11] Industry Comparison - Hewlett Packard Enterprise (HPE) reported Q4 2024 revenues of $8.46 billion, up 15.1% year over year [15] - HPE's EPS of $0.58 compared to $0.52 a year ago [15] - HPE is expected to post earnings of $0.50 per share for the current quarter, representing a year-over-year change of +4.2% [16] Estimate Revisions - Consensus estimate for Micron has shifted -28.81% over the past month [12] - Micron has a Zacks Rank 3 (Hold) based on the overall direction and magnitude of estimate revisions [14]