Micron Technology(US:MU) ZACKSยท2025-03-21 13:50Core 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, 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 $8.05 billion, surpassing the Zacks Consensus Estimate by 1.97% [2] - Non-GAAP gross profit reached $3.05 billion, a significant increase from $1.16 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 $1.86 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 $1.07 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 $7.58 billion in the prior quarter [10] - Operating cash flow for the quarter was $3.94 billion, with capital expenditures of $3.09 billion, resulting in adjusted free cash flow of $857 million [11] Future Outlook - Micron anticipates Q3 fiscal 2025 revenues of $8.80 billion (+/- $200 million), above the Zacks Consensus Estimate of $8.47 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]