Micron issues healthy guidance; strong NAND bit growth expected

|About: Micron Technology Inc. (MU)|By:, SA News Editor

Micron (MU) expects FQ4 revenue of $4B-$4.2B vs. a $4.06B consensus.

DRAM bit growth was flat Q/Q in FQ3, and ASP down 2%; Micron had guided for each to show a low-single digit % drop.

Trade NAND bit growth (inc. 3rd-party purchases) was -6%, and ASP was flat. Guidance was for a high-single digit % production drop, and a low-singe digit % ASP drop.

DRAM cost/bit fell 3%, and NAND cost/bit was flat; both figures are in-line with guidance.

FQ4 DRAM guidance: Low-single digit % bit growth, flat ASP, low-single digit cost/bit decline. Trade NAND guidance: Low-to-mid teens % bit growth (aided by mobile product launches), low-to-mid single digit % ASP decline, flat cost/bit.

DRAM made up 69% of FQ3 revenue, and NAND 28%. Gross margin was 34%, flat Q/Q and up from 24% a year ago.

Operating cash flow was $1.46B, and capex $576M. FY14 capex guidance is at $2.8B-$3.2B.

MU -1.1% AH following a big spring rally.

FQ3 results, PR, earnings slides (.pdf)