Micron (MU) reported earnings on Wed 21 Dec 2016 (a/h)

** charts before earnings **

 

** charts after earnings **

 

 Micron beats by $0.03, reports revs in-line :

• Reports Q1 (Nov) earnings of $0.32 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.29; revenues rose 18.5% year/year to $3.97 bln vs the $3.94 bln Capital IQ Consensus.
  • The increase in the company's revenues of 23 percent for the first quarter of fiscal 2017 compared to the fourth quarter of fiscal 2016 was due primarily to 18 percent and 26 percent increases in DRAM and trade NAND sales volumes, respectively, and a 5 percent increase in DRAM average selling prices.
  • The company's overall consolidated GAAP gross margin of 25 percent for the first quarter of fiscal 2017 was 7 percentage points higher compared to the fourth quarter of fiscal 2016 primarily due to manufacturing cost reductions and increases in DRAM average selling prices.

Micron: Industry Breakdown from Presentation :

• DRAM Guidance
  • Expect 2017 supply bit growth in the 15%-20% range.
  • Assumes suppliers won't add significant wafer capacity.
  • Longer-term, expect bit demand growth of approximately 20%-25%.
• NAND Guidance
  • Expect 2017 supply bit growth in the high 30% to low 40% range.
  • Assumes impact of 3D NAND conversions.
  • Longer-term, expect bit demand growth of approximately 40%-45%.
  • Expect to ship 3D XPointTM technology for revenue in 2017.
• DRAM (61% of Q1 revenue)
  • Mobile represented approximately 30%.
  • PC segment was in the mid-20s % range.
  • Server business was in the high-teens % range.
  • Specialty DRAM, which includes networking, graphics, automotive and other embedded technologies, was in the mid-20s % range.
• NAND (32% of Q1 revs)
  • Consumer, which includes memory cards, USB and components, represented 40%.
  • Mobile was in the low-20s %.
  • SSDs were in the mid-teens %.
  • Automotive and Industrial Multi-Market Segment and other embedded applications were in the 20% range.
• Storage Business Unit
  • Revenue up 13% Q/Q.
  • Continued to strengthen NAND and SSD product portfolios.
  • Now in fully-ramped production and customer qualification for 3D NAND TLC client and cloud drives.
• Embedded Business Unit
  • Revenue up 13% Q/Q driven by seasonal strength
  • Consumer revenue driven by home automation and camera
  • Saw continued strength and increasing demand in Automotive
• Mobile Business Unit
  • Revenue up 54% Q/Q driven by customer qualifications.
  • Saw strong sales of LPDRAM and Mobile NAND products.
  • Improved profitability from continued 20nm ramp and reduced higher-cost early production inventory.
• Computer and Networking Business Unit
  • Revenue up 18% Q/Q due to strong demand and 20nm shipments.
  • Saw additional Cloud growth and qualifications for top customers.
  • Graphics demand fueled by GPU launches and strong console sales.