Micron Q1 FY8/25 Earnings Review

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Unpopular Opinion - Pretty Good Quarter

By Alex King, CEO, Cestrian Capital Research, Inc.

Micron had the misfortune to report today after Fedmaggeddon and Vixpiry and a bunch of other reasons which cause equities to commit ritual suicide in the last couple hours of trading. So of course the stock is halfway to Hades and still diving.

The quarter was really very good. The guide is for a material deceleration in growth but then MU isn't a smooth-sailing kind of name anyway. Two things nag at me.

1) The CEO statement in the press release referred to the consumer segment being weak, but the company expecting to see growth re-accelerate in H2. I don't love how MU management handle capital markets, they tend to the jam-tomorrow story which today had echoes of.

2) Before everyone got permabull on semiconductor because it was going up and to the right forever, this is what semiconductor looked like at the top; peak growth AND peak cashflow margins. So that the top had low valuation multiples b/c even if the price was big, the denominators were bigger. Whereas the bottom had huge valuation multiples because even if the price was small, the denominators were tiny. I wonder if we're at trough trailing multiples here - the valuation metrics are really not high, as you will see below.

Financial Summary

Here’s the headlines.

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