Micron Technology (NASDAQ:MU) reported impressive second-quarter fiscal 2024 non-GAAP earnings of 42 cents per share, an estimate of a loss of 27 cents. This marks a significant turnaround from the loss of 95 cents per share reported in the previous quarter and $1.91 per share in the year-ago quarter.
Quarterly revenues for MU surged by 58% year over year and 23% sequentially to reach $5.8 billion, outpacing the Zacks Consensus Estimate of $5.33 billion. Following this positive earnings report, the company’s shares experienced a 17% increase in the pre-market session.
Micron Technology’s exceptional performance in the fiscal second quarter can be attributed to improved market conditions and effective sales strategies. Notably, the company saw double-digit growth across its computing and networking, storage, and mobile business units.
Dynamic Random Access Memory (DRAM) revenues reached $4.16 billion, comprising 71% of total revenues for the fiscal second quarter. This segment experienced a 55.5% year-over-year increase and a 21% sequential growth. NAND revenues totaled $1.57 billion, representing 27% of total revenues, with an 80.8% year-over-year growth and 27% sequential increase.
Segment-wise, revenues from the computing and networking business unit increased by 57.14% year over year to $2.2 billion, while the mobile business unit saw a surge of 69.3% to $1.6 billion. The embedded business unit reported revenues of $1.1 billion, up 61.8% year over year, and the storage business unit recorded $905 million in revenues, marking a 78.9% year-over-year increase.
MU’s non-GAAP gross profit for the fiscal second quarter stood at $1.163 billion, reflecting a significant improvement from the previous quarter. The non-GAAP gross margin expanded to 20%, a substantial increase from the previous quarter’s margin of 0.8%.
Looking ahead, Micron Technology anticipates third-quarter fiscal 2024 revenues of $6.60 billion (± $200 million). The company projects a non-GAAP gross margin of 26% (+/-150 basis points) and operating expenses of $990 million (+/-$15 million). Despite anticipated fluctuations in DRAM and NAND bit shipments, the company remains optimistic amid ongoing supply challenges in the industry.
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