Micron Technology Accelerates Revenue Growth in Fiscal 1st Quarter

Company reports double-digit revenue growth year over year and quarter over quarter

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James Li
Dec 19, 2017
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Micron Technology Inc. (

MU, Financial), a provider of dynamic random-access memory (DRAM) technologies, said fiscal first-quarter revenues increased 71% from the three months ending Dec. 1, 2016.

The Boise, Idaho-based company reported total revenues of $6.80 billion and net earnings of $2.19 per share, the former outperforming analyst estimates by approximately $0.41 billion.

Company earnings summary

Micron CEO Sanjay Mehrotra said double-digit sequential revenue growth across the company’s business segments contributed to an 11% quarter-over-quarter revenue growth. The CEO added strong revenue growth reflects “increasing demand for [Micron’s] mobile, server and SSD products.” Figure 1 shows the company’s revenue trend over the past 15 years.

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Figure 1

Micron’s expanding operating margins and gross margins primarily reflect expanding margins in the company’s DRAM and NAND flash memory products. The company’s gross margin increased 5.6% from the quarter ending August 2016 and approximately 19.60% per year over the past five years. Figure 2 shows the company’s profit margin trends over the past five years.

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Figure 2

“30-year financials” page illustrates three ways to analyze financial statements

Investopedia defines three types of financial statement analysis:

  • “Common-size analysis” considers each income statement item as a percent of revenue. Examples of common-size analysis include operating margin, net margin and gross margin. For the balance sheet, common-size analysis considers each item as a percent of total assets.
  • “Horizontal analysis” takes each income statement or balance sheet item and computes the year-over-year percent change for each item over the past several years.
  • “Ratio analysis” considers common financial ratios like the current ratio, quick ratio, debt-to-equity ratio and the return on assets.

On a company’s 30-year financials page, you can view the income statement numbers in one of four formats as illustrated in Figure 3. The gray “Income Statement” header contains four radio buttons labeled $, %, /share and % YOY.

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Figure 3

Click on the “%” radio button to show the income statement values as a percentage of revenue. Likewise, clicking on the “% YOY” radio button displays the income statement values as year-over-year percentage changes. The former allows you to run common-size analysis while the latter allows you to run horizontal analysis. Figure 3.1 shows Micron’s income statement with common-size analysis while Figure 3.2 shows the income statement with horizontal analysis.

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Figure 3.1

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Figure 3.2

You can run ratio analysis on a specific company by simply looking at the “Ratios” section of the 30-year financials page. Figure 4 shows a sample “Ratios” section for Micron.

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Figure 4

Premium members can view and download 30 years of financial data for U.S. companies. The premium membership also includes access to the All-in-one Screener, the aggregated portfolio of gurus and various value screeners, including

Warren Buffett (Trades, Portfolio)’s screen for good companies.

Disclosure: I do not have positions in the stocks mentioned.

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