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Tuesday, December 22, 2015

Micron (MU) reported earnings on Tue 22 Dec 2015 (a/h)

** charts before earnings **


 






** charts after earnings **



 





Micron beats by $0.01, misses on revs; guides Q2 EPS below consensus, revs below consensus :
  • Reports Q1 (Nov) earnings of $0.24 per share, $0.01 better than the Capital IQ Consensus of $0.23; revenues fell 26.7% year/year to $3.35 bln vs the $3.47 bln Capital IQ Consensus.
    • Revenues for Q1 were lower compared q/q primarily due to a 13 percent decline in DRAM average selling prices.
    • Non-Volatile trade revenues for the first quarter of fiscal 2016 declined 2 percent compared to the fourth quarter primarily as a result of a 7 percent decline in average selling prices partially offset by an increase in sales volume.
    • The company's overall consolidated gross margin of 25 percent for the first quarter of fiscal 2016 was 2 percent lower compared to the fourth quarter of fiscal 2015 primarily due to lower average selling prices partially offset by manufacturing cost reductions for DRAM and Non-Volatile products.
Guidance
  • Co issues downside guidance for Q2, sees EPS of ($0.12)-($0.05), excluding non-recurring items, vs. $0.23 Capital IQ Consensus Estimate; sees Q2 revs of $2.9-3.2 bln vs. $3.47 bln Capital IQ Consensus Estimate.
  • Q2 Gross Margin expected to be in the range of 17.5-20.0%.
  • Operatin Expense expected to be in the range of $565-620 mln
  • Operating Income (Loss) ($60) mln to $20 mln
  • FY16 CapEx expected to be in the range of $5.3-5.8 bln
Outlook Comments
  • PC DRAM remains under pressure; however there are signs of demand stabilizing
  • Client SSD and eMCP prices have been impacted by increased competition
  • We are on track with the qualification of several new technologies including 20nm DDR4 and low-power DDR4, as well as 3D NAND
  • We are hopeful market conditions will improve in CY 2016 with stabilization in PC and continued strength in Mobile, Cloud and Embedded segments

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