Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2024
Micron Technology (Nasdaq: MU) has released its results for the third quarter of fiscal 2024, ending May 30, 2024. The company reported a significant revenue increase of $6.81 billion, up from $5.82 billion in the previous quarter and $3.75 billion in the same period last year.
GAAP net income stood at $332 million, or $0.30 per diluted share, while non-GAAP net income was $702 million, or $0.62 per diluted share. Operating cash flow reached $2.48 billion, a substantial rise from $1.22 billion in the prior quarter and $24 million the previous year.
Driven by robust AI demand, Micron experienced a 50% sequential growth in data center revenue. The company's data center SSD revenue achieved a record high. Investments in capital expenditures were $2.06 billion, resulting in adjusted free cash flows of $425 million. Micron ended the quarter with $9.22 billion in cash and marketable investments.
Looking ahead, Micron provided guidance for the fourth quarter of 2024, forecasting revenue at $7.60 billion ± $200 million and a gross margin of 33.5% ± 1.0% on a GAAP basis.
- Revenue increased to $6.81 billion from $5.82 billion in the previous quarter.
- GAAP net income of $332 million, or $0.30 per diluted share.
- Non-GAAP net income of $702 million, or $0.62 per diluted share.
- Operating cash flow surged to $2.48 billion.
- 50% sequential growth in data center revenue.
- Record high data center SSD revenue.
- Guidance for Q4 2024 predicts revenue of $7.60 billion ± $200 million.
- Operating expenses increased to $1.113 billion from $888 million in the previous quarter.
- Net income decreased from $793 million in the prior quarter to $332 million.
Micron Technology's Q3 2024 results highlight a significant improvement with revenue totaling $6.81 billion, up from $5.82 billion in the previous quarter and $3.75 billion in the same period last year. This represents a
The growth is driven by a 50% sequential increase in data center revenue, primarily due to rising AI demand. Such a surge demonstrates Micron’s effective positioning in high-margin segments like High Bandwidth Memory (HBM) and data center SSDs.
Investors will also be interested in the
However, it's essential to consider potential headwinds. The reliance on AI demand could pose risks if market conditions change. While the short-term outlook is promising, the long-term success will hinge on sustained demand and competitive positioning.
The Q3 results reveal Micron's strategic focus on AI-driven products yielding substantial gains. The record high data center revenue mix underscores the company's strong presence in a rapidly expanding market. The emphasis on high-margin products like HBM and data center SSDs aligns with current industry trends favoring performance-intensive applications.
The projected revenue for Q4 2024 at
However, the competitive landscape in the semiconductor industry remains intense. Companies like Samsung and SK Hynix are also vying for market share in the lucrative AI sector. Micron's ability to maintain its edge through innovation and strategic partnerships will be crucial.
AI demand drives
BOISE, Idaho, June 26, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2024, which ended May 30, 2024.
Fiscal Q3 2024 highlights
- Revenue of
$6.81 billion versus$5.82 billion for the prior quarter and$3.75 billion for the same period last year
- GAAP net income of
$332 million , or$0.30 per diluted share - Non-GAAP net income of
$702 million , or$0.62 per diluted share - Operating cash flow of
$2.48 billion versus$1.22 billion for the prior quarter and$24 million for the same period last year
“Robust AI demand and strong execution enabled Micron to drive
| Quarterly Financial Results | |||||||||||||||||||
| (in millions, except per share amounts) | GAAP(1) | Non-GAAP(2) | |||||||||||||||||
| FQ3-24 | FQ2-24 | FQ3-23 | FQ3-24 | FQ2-24 | FQ3-23 | ||||||||||||||
| Revenue | $ | 6,811 | $ | 5,824 | $ | 3,752 | $ | 6,811 | $ | 5,824 | $ | 3,752 | |||||||
| Gross margin | 1,832 | 1,079 | (668 | ) | 1,917 | 1,163 | (603 | ) | |||||||||||
| percent of revenue | 26.9 | % | 18.5 | % | (17.8 | %) | 28.1 | % | 20.0 | % | (16.1 | %) | |||||||
| Operating expenses | 1,113 | 888 | 1,093 | 976 | 959 | 866 | |||||||||||||
| Operating income (loss) | 719 | 191 | (1,761 | ) | 941 | 204 | (1,469 | ) | |||||||||||
| percent of revenue | 10.6 | % | 3.3 | % | (46.9 | %) | 13.8 | % | 3.5 | % | (39.2 | %) | |||||||
| Net income (loss) | 332 | 793 | (1,896 | ) | 702 | 476 | (1,565 | ) | |||||||||||
| Diluted earnings (loss) per share | 0.30 | 0.71 | (1.73 | ) | 0.62 | 0.42 | (1.43 | ) | |||||||||||
Investments in capital expenditures, net(2) were
Business Outlook
The following table presents Micron’s guidance for the fourth quarter of 2024:
| FQ4-24 | GAAP(1) Outlook | Non-GAAP(2) Outlook |
| Revenue | ||
| Gross margin | ||
| Operating expenses | ||
| Diluted earnings per share | ||
Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.
Investor Webcast
Micron will host a conference call on Wednesday, June 26, 2024 at 2:30 p.m. Mountain Time to discuss its third quarter financial results and provide forward-looking guidance for its fourth quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow us on X @MicronTech.
About Micron Technology, Inc.
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
© 2024 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements regarding our industry, our strategic position, technology trends and developments including artificial intelligence, market demand, and our financial and operating results, including our guidance for the fourth quarter of 2024. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.
| (1) | GAAP represents U.S. Generally Accepted Accounting Principles. |
| (2) | Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release. |
| MICRON TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited) | |||||||||||||||
| 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine months ended | ||||||||||||
| May 30, 2024 | February 29, 2024 | June 1, 2023 | May 30, 2024 | June 1, 2023 | |||||||||||
| Revenue | $ | 6,811 | $ | 5,824 | $ | 3,752 | $ | 17,361 | $ | 11,530 | |||||
| Cost of goods sold | 4,979 | 4,745 | 4,420 | 14,485 | 12,511 | ||||||||||
| Gross margin | 1,832 | 1,079 | (668 | ) | 2,876 | (981 | ) | ||||||||
| Research and development | 850 | 832 | 758 | 2,527 | 2,395 | ||||||||||
| Selling, general, and administrative | 291 | 280 | 219 | 834 | 701 | ||||||||||
| Restructure and asset impairments | — | — | 68 | — | 167 | ||||||||||
| Other operating (income) expense, net | (28 | ) | (224 | ) | 48 | (267 | ) | 29 | |||||||
| Operating income (loss) | 719 | 191 | (1,761 | ) | (218 | ) | (4,273 | ) | |||||||
| Interest income | 136 | 130 | 127 | 398 | 334 | ||||||||||
| Interest expense | (150 | ) | (144 | ) | (119 | ) | (426 | ) | (259 | ) | |||||
| Other non-operating income (expense), net | 10 | (7 | ) | — | (24 | ) | (2 | ) | |||||||
| 715 | 170 | (1,753 | ) | (270 | ) | (4,200 | ) | ||||||||
| Income tax (provision) benefit | (377 | ) | 622 | (139 | ) | 172 | (201 | ) | |||||||
| Equity in net income (loss) of equity method investees | (6 | ) | 1 |
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FAQ
What were Micron Technology's Q3 2024 earnings?
Micron Technology reported GAAP net income of $332 million, or $0.30 per diluted share, and non-GAAP net income of $702 million, or $0.62 per diluted share, for Q3 2024.
How much revenue did Micron Technology generate in Q3 2024?
Micron Technology generated $6.81 billion in revenue for Q3 2024.
What is the guidance for Micron Technology's Q4 2024 revenue?
Micron Technology has forecasted Q4 2024 revenue at $7.60 billion ± $200 million.
What was the operating cash flow for Micron Technology in Q3 2024?
Micron Technology's operating cash flow was $2.48 billion for Q3 2024.
What were Micron Technology's operating expenses in Q3 2024?
Micron Technology's operating expenses were $1.113 billion in Q3 2024.
How did AI demand impact Micron Technology's revenue in Q3 2024?
AI demand drove a 50% sequential growth in data center revenue, contributing to Micron Technology's overall revenue increase in Q3 2024.
What is the GAAP gross margin outlook for Micron Technology in Q4 2024?
Micron Technology has provided a GAAP gross margin outlook of 33.5% ± 1.0% for Q4 2024.
Micron Technology, Inc.
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Semiconductor and Related Device Manufacturing
Manufacturing
United States of America
BOISE
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