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Are We Close to a Bottom in Micron Technology, Inc. (NASDAQ:MU)?

Micron Technology, Inc. (NASDAQ:MU) has been perhaps the most significant force in defining sentiment in the semiconductor space over the past year. It has been the flag-bearer. And, with that space suffering in recent action – and some calling for this to be the first leg of a cyclical downturn – it’s no surprise to see the stock correcting.

However, the performance is still there. To highlight this, the company recently announced results of operations for its fourth quarter and full year of fiscal 2018, which ended August 30, 2018. The main highlights of the report included revenues of $8.44 billion which was up 38% compared with the same period last year, GAAP net income of $4.33 billion or $3.56 per diluted share, non-GAAP net income of $4.31 billion, or $3.53 per diluted share, and operating cash flow of $5.16 billion compared with $3.20 billion for the same period last year

Micron Technology, Inc. (NASDAQ:MU) trumpets itself as a company that provides semiconductor systems worldwide.

The company operates through four segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit.

It offers DDR3 and DDR4 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; lower power DRAM products for smartphones, tablets, automotive, laptop computers, and other mobile consumer device applications; DDR2 DRAM and DDR DRAM, GDDR5 and GDDR5X DRAM, SDRAM, and RLDRAM products for networking devices, servers, consumer electronics, communications equipment, computer peripherals, and automotive and industrial applications, as well as for computer memory upgrades; and hybrid memory cube semiconductor memory devices.

The company also provides NAND products, which are electrically re-writeable, non-volatile semiconductor memory, and storage devices; client solid-state drives (SSDs) for notebooks, desktops, workstations, and other consumer applications; enterprise SSDs for server and storage applications; cloud SSDs; and multi-chip package and managed NAND products.

In addition, it manufactures products that are sold under other brand names; and resells flash memory products that are purchased from other NAND Flash suppliers. Further, the company provides 3D XPoint non-volatile memory products; and NOR Flash, which are electrically re-writeable and semiconductor memory devices for automotive, industrial, connected home, and consumer applications.

It markets its products to original equipment manufacturers and retailers through its internal sales force, independent sales representatives, and distributors; and through a Web-based customer direct sales channel, and channel and distribution partners. The company was founded in 1978 and is headquartered in Boise, Idaho.


Still Delivering the Goods

As we discussed earlier, MU recently announced results of operations for its fourth quarter and full year of fiscal 2018, which ended August 30, 2018. The market has been getting hit, and everything in the IT space has been out in front on the downside, so we wouldn’t take it as a reflection of the market’s perception of these numbers that the stock is sideways to lower in recent action.

“Micron delivered an exceptional fourth quarter and capped record fiscal year results by becoming the second largest semiconductor company in the U.S.,” said Sanjay Mehrotra, President and CEO of Micron Technology.

“In the fourth quarter, we set revenue records across all our major markets, from automotive and industrial to mobile and cloud datacenters. The secular and diversified growth drivers in our industry combined with accelerating pace of transformation of the new Micron form a tremendous catalyst for us to create enduring value for our customers and investors in 2019 and the years ahead.”

Micron Technology, Inc. (NASDAQ:MU) pulled in sales of $8.4B in its last reported quarterly financials, representing top line growth of 37.5%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($6.8B against $5.8B).

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