Micron Technology Inc
Micron Technology Inc reported its Q32020 earnings on 29th June 2020. Revenue for Q3 was up 14% Y-o-Y at $5.4 billion. DRAM made up 66% of the total revenue for the quarter and the segment was up 6% Y-o-Y. The NAND segment performed the best with a growth of 50% Y-o-Y. NAND revenue accounted for roughly 31% of total revenues for Micron.
However, non-GAAP net income actually fell 21% Y-o-Y to $941 million. Micron Technology earnings for Q32020 were above the expected forecasts, and therefore, the stock gained almost 6% during after-hours trading. Additionally, Micron has adjusted its forecasted Q42020 earnings from 95 cents a share to $1.15 a share. The earnings per share for Q4 last year was 56 cents a share.
According to Sanjay Mehrotra, CEO, Micron Technology Inc, “Consumers are significantly increasing online activity, including e-commerce, gaming and video streaming, all of which drive additional data center capacity requirements. Trends like working-from-home and online learning are likely to drive long-term changes in how we think about workforce flexibility and education.”
He further added, “Our cloud DRAM sales grew significantly quarter-over-quarter with strong demand due to the work-from-home and e-learning economy and significant increases in e-commerce activity around the world.” Micron believes that the pandemic-induced changes will drive higher consumption of storage and memory products, representing a tailwind for the company.
Micron’s earnings call resembled similarities to the commentaries provided by other hardware majors like Nvidia and Intel, who have also alluded to robust wireless, data, and cloud performance offsetting weakness in demand on the consumer side of the business. As and when the demand for consumer electronics products like PCs and smartphones returns, the upside for companies like Micron could be quite significant.
Micron stock closed at $49.14 on 29th June 2020, up 6.05% for the past month.