Micron surges as Q4 results, guidance top expectations

Micron Technology (NASDAQ:MU) shares rose 10% in extended trading on Wednesday after the memory maker reported fourth-quarter results and guidance for the first-quarter of fiscal 2025 that were above expectations as demand for artificial intelligence continues to rise.

For the period ending Aug. 29, Micron earned an adjusted $1.18 per share as revenue rose 93.3% year-over-year to come in at $7.75B.

Adjusted gross margin came in at 36.5% during the period, well above the 34.7% consensus estimate. Cash flow from operations during the quarter was $3.41B.

Analysts were expecting the company to report adjusted earnings of $1.11 per share on $7.64B in revenue.

Western Digital (WDC) and Seagate Technologies (STX), which often trade in tandem with Micron, rose on the back of the results.

“We are entering fiscal 2025 with the best competitive positioning in Micron’s history,” Sanjay Mehrotra said in a statement. “We forecast record revenue in fiscal Q1 and a substantial revenue record with significantly improved profitability in fiscal 2025.”

Looking ahead, Micron expects revenue for the first-quarter to be between $8.5B and $8.9B, with the midpoint of $8.7B above the $8.32B estimate. The company also said it expects to earn between $1.66 and $1.82 per share on an adjusted basis, with the midpoint of $1.74 above the $1.52 consensus estimate.

Adjusted gross margin for the period is expected to be between 38.5% and 40.5%, while adjusted operating expenses are forecast to be between $1.07B and $1.1B.

“Micron’s Q1 guidance blew past estimates, indicating that the growth in HBM and NAND in the data center is more than offsetting any weakness in consumer NAND and DRAM demand, which further demonstrates that demand for AI infrastructure remains strong,” Seeking Alpha analyst Jeremy of Kumquat Research said.

The company will host a conference call at 4:30 p.m. EST to discuss the results.