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Jun 01, 2023

Micron Q3 2023 Earnings Report

Micron's Q3 2023 revenue, gross margin, and EPS exceeded guidance midpoint, but CAC decision poses a significant headwind.

Key Takeaways

Micron Technology, Inc. reported a revenue of $3.75 billion for Q3 2023, surpassing the prior quarter's $3.69 billion but lower than the $8.64 billion for the same period last year. The company experienced a GAAP net loss of $1.90 billion, or $1.73 per diluted share, and a non-GAAP net loss of $1.57 billion, or $1.43 per diluted share. Micron believes the memory industry has passed its revenue trough, but faces headwinds from a recent CAC decision.

Q3 revenue was $3.75 billion, exceeding the midpoint of the guidance range.

GAAP net loss was $1.90 billion, or $1.73 per diluted share.

Non-GAAP net loss was $1.57 billion, or $1.43 per diluted share.

The company anticipates gradual restoration of industry supply-demand balance and margin improvements.

Total Revenue
$3.75B
Previous year: $8.64B
-56.6%
EPS
-$1.43
Previous year: $2.59
-155.2%
Gross Profit
-$668M
Previous year: $4.04B
-116.6%
Cash and Equivalents
$9.3B
Previous year: $9.16B
+1.5%
Free Cash Flow
-$1.36B
Previous year: $1.31B
-203.8%
Total Assets
$65.7B
Previous year: $65.3B
+0.6%

Micron

Micron

Forward Guidance

Micron's guidance for the fourth quarter of 2023 includes revenue of $3.90 billion ± $200 million, a GAAP gross margin of -12.5% ± 2.5%, GAAP operating expenses of $946 million ± $15 million, and a GAAP diluted loss per share of $1.34 ± $0.07.

Positive Outlook

  • Revenue: $3.90 billion ± $200 million
  • Non-GAAP Gross margin: (10.5%) ± 2.5%
  • Non-GAAP Operating expenses: $845 million ± $15 million

Challenges Ahead

  • GAAP Gross margin: (12.5%) ± 2.5%
  • GAAP Operating expenses: $946 million ± $15 million
  • GAAP Diluted earnings (loss) per share: ($1.34) ± $0.07
  • Non-GAAP Diluted earnings (loss) per share: ($1.19) ± $0.07