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MU Q2 Earnings Beat Estimates: Will Strong Guidance Uplift the Stock?
MUMicron Technology(MU) ZACKS·2025-03-21 13:50

Core Viewpoint - Micron Technology reported strong fiscal Q2 2025 earnings, with significant year-over-year growth in both earnings per share and revenues, driven by high demand for its high bandwidth memory products [1][2]. Financial Performance - Earnings per share for Q2 fiscal 2025 were 1.56,exceedingtheZacksConsensusEstimateby9.11.56, exceeding the Zacks Consensus Estimate by 9.1% and up 271% from the previous year's earnings of 0.42 [1] - Revenues increased by 38.3% year over year to 8.05billion,surpassingtheZacksConsensusEstimateby1.978.05 billion, surpassing the Zacks Consensus Estimate by 1.97% [2] - Non-GAAP gross profit reached 3.05 billion, a significant increase from 1.16billionintheyear−agoquarter,althoughitdeclined11.31.16 billion in the year-ago quarter, although it declined 11.3% sequentially [7] - Non-GAAP gross margin improved to 37.9% from 20% year over year but decreased from 39.5% in the previous quarter [7][9] Revenue Breakdown - DRAM revenues were 6.1 billion, accounting for 76% of total revenues, up 47.3% year over year but down 4.3% sequentially [4] - NAND revenues totaled 1.86billion,representing231.86 billion, representing 23% of total revenues, up 18.4% year over year but down 17.2% quarter over quarter [4] - Revenues from the Compute and Networking Business Unit soared 109% year over year to 4.56 billion [5] - Mobile Business Unit revenues declined 33% year over year to 1.07billionduetocustomerinventoryadjustments[6]CashFlowandBalanceSheet−Thecompanyendedthequarterwithcashandinvestmentsof1.07 billion due to customer inventory adjustments [6] Cash Flow and Balance Sheet - The company ended the quarter with cash and investments of 8.22 billion, up from 7.58billioninthepriorquarter[10]−Operatingcashflowforthequarterwas7.58 billion in the prior quarter [10] - Operating cash flow for the quarter was 3.94 billion, with capital expenditures of 3.09billion,resultinginadjustedfreecashflowof3.09 billion, resulting in adjusted free cash flow of 857 million [11] Future Outlook - Micron anticipates Q3 fiscal 2025 revenues of 8.80billion(+/−8.80 billion (+/- 200 million), above the Zacks Consensus Estimate of 8.47billion[12]−Projectednon−GAAPgrossmarginforQ3is36.58.47 billion [12] - Projected non-GAAP gross margin for Q3 is 36.5% (+/- 100 basis points) [12] - Adjusted EPS for Q3 is expected to be 1.57 (+/- 10 cents), contrasting with a consensus loss estimate of $1.48 per share [13]