Earnings Updates | Q1 2024

July 3, 2024by toleg.work

The corporate reporting period has is starting.

Last week, 10 companies from the S&P 500 index reported.

Today, we are going to analyze the results of Micron Technology. Its revenue is $6.8B. It grew by +16.7% compared to the corresponding value for the previous quarter and exceeded analysts’ expectations by +2.1%. Let’s analyze the company’s business in more detail.

Micron Technology is one of the largest chip manufacturers in the world. The company ranks 3rd in the DRAM chip market and 5th in the NAND chip market. The company has offices in 17 countries, as well as 12 laboratories and 11 production sites.

During the reporting period, the company confirmed its recovery from the difficult year of 2023. Namely, it received a net profit of $332M (in the corresponding quarter of the previous year, a loss of $1.8B was received). The loss period was due to restrictions imposed by the Chinese government on the sale of Micron chips. To improve its market position, Micron is expanding its supply geography and consistently increasing R&D expenses, namely by +2.1% more than last quarter and +12.1% more than the corresponding quarter of last year.

73% of the revenue structure is accounted for by manufacturing costs, and 27% by gross profit. Over the past quarter, the company earned a profit of $332M. Its market capitalization is $146B.

After the publication of the report, Micron Technology’s shares fell by -7.1% to $131 per share. Market participants were dissatisfied with the financial results and reacted negatively to the company’s development prospects.

*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter

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