Micron’s quarterly profit grew almost three times, revenue – by a third
The manufacturer of memory chips Micron Technology (MU) in the first fiscal quarter of 2022, which ended on December 2, jumped 2.9 times and amounted to $2.31 billion, or $2.04 per share, compared with $803 million, or $0.71 per share, for the same quarter of the previous fiscal year. According to the company’s press release, earnings excluding one-time factors increased to $2.16 per share from $0.78 per share.
Micron’s quarterly revenue increased by 33.3% to $7.69 billion from $5.77 billion. The financial results turned out to be slightly better than analysts’ forecasts. Experts surveyed by FactSet, on average, predicted Micron’s adjusted earnings of $2.1 per share on revenue of $7.68 billion. The company previously announced that it expects quarterly revenue of $7.65 billion. Nevertheless, revenue growth slowed slightly, which happened for the first time in a year.
This indicator increased by 36.6% compared to last year’s previous financial quarter. According to Micron’s forecast, its profit excluding one-time factors will be $1.85-2.05 per share, revenue – $7.3-7.7 billion in the current quarter. FactSet analysts expect adjusted earnings of $1.84 per share on revenue of $7.29 billion. During a conference call with analysts, micron chief executive Officer Sanjay Mehrotra said that problems in global supply chains would ease in 2022, and this year will be decisive for the company.
According to the company’s forecast, the demand for DRAM memory chips in 2022 will grow by 15-19%, for NAND chips – by about 30%. Although DRAM chips accounted for 73% of Micron’s revenue in the last quarter ($5.59 billion), sales of NAND chips accounted for 24% of the gain ($1.89 billion). The company also reported that its capital expenditures amounted to $ 3.27 billion in the last quarter. For the 2022 fiscal year, it planned them at $ 11-12 billion. Micron shares rose 6.8% in additional trading on Monday. Since the beginning of this year, their value has increased by 9.1%.
