Micron Technology (MU) Q4 2024 earnings summary

Executive summary

• Fiscal Q4 2024 revenue reached $7.8 billion, up 14% sequentially and 93% year-over-year, at the high end of guidance, with gross margin and EPS above guidance ranges.

• Fiscal 2024 revenue grew 62% to $25.1 billion, with gross margin expanding by over 31 percentage points year-over-year and record highs in NAND, storage, data center, and automotive segments.

• Leadership in DRAM and NAND technology, including 1-beta DRAM and G8/G9 NAND, with robust data center demand outpacing leading-edge node supply.

• Entering fiscal 2025 with strong competitive positioning and forecasting record revenue and improved profitability, driven by AI demand.

• Expecting substantial revenue and profitability improvement in FY25, with guidance for record quarterly revenue in FQ1-25.

Financial highlights

• Fiscal Q4 revenue: $7.8 billion, up 14% sequentially and 93% year-over-year; FY24 revenue: $25.1 billion, up 62% year-over-year.

• Q4 DRAM revenue: $5.3 billion (69% of total), up 93% year-over-year; Q4 NAND revenue: $2.4 billion (31% of total), up 96% year-over-year.

• Q4 gross margin: 36.5% (up over 8 points sequentially); Q4 operating income: $1.7 billion (23% margin); Q4 adjusted EBITDA: $3.7 billion (48% margin); Q4 non-GAAP EPS: $1.18.

• FY24 gross margin: 23.7%; FY24 operating income: $1.9 billion (8% margin); FY24 EBITDA: $9.7 billion (38% margin); FY24 non-GAAP EPS: $1.30.

• Q4 operating cash flow: $3.4 billion (44% of revenue); FY24: $8.5 billion (34% of revenue); Q4 free cash flow: $323 million; FY24: $386 million.

Outlook and guidance

• Fiscal Q1 2025 revenue guidance: $8.7 billion ± $200 million; gross margin: 39.5% ± 1.0%; EPS: $1.74 ± $0.08.

• Fiscal 2025 CapEx expected to be in the mid-30s percentage range of revenue, up from $8.1 billion in 2024.

• Operating expenses for fiscal 2025 projected to grow by mid-teens percent, weighted to the second half.

• DRAM and NAND industry bit demand growth for 2025 expected in the mid-teens percentage range.

• Days of inventory outstanding expected to decline and approach target by end of fiscal 2025.