Micron Technology Stock Fair Value Calculator – MICRON TECHNOLOGY Reports First Quarter Earnings for FY2024 on November 30, 2023
December 28, 2023
🌥️Earnings Overview
On November 30, 2023, MICRON TECHNOLOGY ($NASDAQ:MU) announced their first quarter earnings results for FY2024 with revenue of USD 4726.0 million, a 15.7% increase compared to the previous year. The net income of the quarter was USD -1234.0 million, which was an improvement from the last year’s figure of -195.0 million.
Price History
Despite the expectations of the analysts, the company’s stock opened at $81.5 and closed at $78.7 on Wednesday, down 4.2% from its prior closing price of 82.2. This was due to the company’s underperformance in its latest financial report. The company attributed this to its lower-than-expected sales of memory products and services in the quarter. The underperformance of MICRON TECHNOLOGY resulted in a decrease in share price on Wednesday.
This caused investors to doubt the company’s ability to perform well in the remaining quarters of FY 2024. Many investors have already reduced their exposure to MICRON TECHNOLOGY and are looking for better-performing stocks in the tech sector. It is yet to be seen if the company can regain investor confidence in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Micron Technology. More…
| Total Revenues | Net Income | Net Margin |
| 16.18k | -6.87k | -41.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Micron Technology. More…
| Operations | Investing | Financing |
| 2.02k | -5.48k | 2k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Micron Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 63.78k | 20.89k | 38.85 |
Key Ratios Snapshot
Some of the financial key ratios for Micron Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.8% | 9.5% | -38.1% |
| FCF Margin | ROE | ROA |
| -30.9% | -8.9% | -6.0% |
Analysis – Micron Technology Stock Fair Value Calculator
At GoodWhale, we have conducted an analysis of MICRON TECHNOLOGY‘s financials. Our proprietary Valuation Line has calculated the intrinsic value of a MICRON TECHNOLOGY share to be around $87.0. This suggests that the current market price of $78.7 for MICRON TECHNOLOGY stock is fair, yet still undervalued by 9.5%. As such, this may be an ideal time for investors to seek to purchase MICRON TECHNOLOGY stock. More…
Peers
In the semiconductor industry, there is intense competition between Micron Technology Inc and its competitors: Intel Corp, Advanced Micro Devices Inc, GLOBALFOUNDRIES Inc. All four companies are striving to develop the most innovative and efficient products to stay ahead of the competition. This competition benefits consumers as it drives down prices and leads to continuous innovation in the semiconductor industry.
– Intel Corp ($NASDAQ:INTC)
Intel is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world’s second largest and second highest valued semiconductor chip maker based on revenue after being overtaken by Samsung, and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.
As of 2022, Intel has a market capitalization of 106.76 billion dollars. This is a decrease from previous years, likely due to increased competition from other companies such as AMD. Despite this, Intel still remains one of the most valuable and well-known semiconductor companies in the world. In addition to its market cap, Intel also has a return on equity (ROE) of 19.16%. This is a measure of how profitable the company is relative to the amount of money that shareholders have invested. A higher ROE indicates that the company is more efficient at generating profits and is a better investment.
– Advanced Micro Devices Inc ($NASDAQ:AMD)
As of 2022, AMD has a market cap of 92.39B and a ROE of 4.13%. The company is a global semiconductor company that designs, manufactures, and markets computer processors, graphics cards, and related technologies. Its products are used in personal computers, game consoles, and cloud computing.
– GLOBALFOUNDRIES Inc ($NASDAQ:GFS)
As of 2022, GLOBALFOUNDRIES Inc has a market cap of 28.29B and a Return on Equity of 5.09%. The company is a leading provider of advanced semiconductor manufacturing services.
Summary
Investors in Micron Technology have had a mixed reaction to the company’s first quarter earnings of FY2024. Revenue increased 15.7% from the prior year, however net income was down significantly, posting a loss of -1234 million. The company’s stock price dropped following the announcement, indicating investor concern. Analysts have noted that while the revenue increase is encouraging, the company must find ways to improve profitability in order to see higher stock performance in the future.
