Closing Bell: Micron Forecast Tops Estimates

0:00Cities are growing, with UN forecasting rapid urbanisation over the coming decades, how do we ensure they get smarter, on which cities have a blueprint that addresses rapidly evolving infrastructure requirements? Find out more later in the podcast. Bloomberg Audio Studios Podcasts, Radio, News This is the Closing Bell. On the stock movers report, the company's making moves at the close of US trading with Carol Maser, Tim Stenevek, Romain Bostic, and Katie Griefeld. Micron Ernie is crossing the wire right now. Let's get right to it. Expectations were high and on the surface. It does appear that they met those expectations. Adjust the revenue in the physical fourth quarter, 5.4. Excuse me, 54.2, 3 billion dollars. The street was looking for roughly about 52 billion dollars. We should point out on a year over a year basis, that's growth of about 370%.

1:02Gross margin in the quarter expanded to 87% up from 86.2. And here's your bottom line number. Adjusted EPS for the quarter, $33.42 a street was looking for $31.83. The guidance for the current quarter that were in the fiscal first quarter. The company says expect adjusted EPS of $37.15 to $39.15. The low end of that range is above the average of annual assessments, 436.02. And finally, guys, the revenue figure for the current quarter, the company guiding the 60 to 63 billion dollars in revenue. The street estimate was for 57 billion. The knee jerk reaction, though, is basically the shares. We'll call it unchanged. There you go. Romain, I'm going to stick with those revenues for this Boise based behemoth here and kind of look under the hood a little bit here. And you really see beats across the border. It's a loud memory. That beats $16.28 billion. The estimate, $15 billion automotive and embedded revenues, $6.82 as well. Look, we're talking about this, of course, in the context of AI in that buildup. But this is very much a company that is so widely involved in so many aspects of the broader tech space.

2:07I think I've been looking at Sandisk, which was as much up as much as 14% is down about half a percent today. But when you look at Sandisk and Micron, overall, they've outpaced Nvidia this year. Part of that, I think you're seeing not only from the numbers that David was just mentioning, but when you look at a regulatory infrastructure, obviously those are not, you're not seeing those fears evaluate through the market because you had this big press conference at the White House this week. You had all the AI leaders talking about it unclear if that was going to hit, you know, all these earnings numbers. But obviously it's too early, but it's good news for them so far. And they've really been outpacing some competitors so far. And we're getting a little bit more details about these earnings. One number sticking out to me, fourth quarter core data center revenue, a big beat here, $18 billion for estimates of just $11.3. Of course, we know the data center trade is alive and well. And we're seeing that in these results. Another one, fourth quarter adjusted operating income also beating estimates remain. Yeah, we should point out that when you look at sort of the unchanged nature of these shares, remember they had rallied about 40% off of those lows from the summer and still up something like close to 300% on a year to date basis.

3:14And a big part of the reason guys is to a certain extent the numbers from last quarter, the numbers for the current quarter are probably a little bit less important than what the company says on the conference call about the long term picture looking into 2027 calendar year, 2028 and even beyond. Remember when we heard from Sandesk, we heard from Nvidia, we heard from some of the other chip makers. It was really about that multi year forecast and whether that runway for this continue for AI spending would actually continue looking for quarter cash flow from operations, 43.97 billion dollars and we were talking just a few moments ago with the CFO of HPE. I just talking about sort of how emblematic this is a company that has been around now for many years, I'm transitioning into a very AI focused AI network focused company. Again, we're seeing this transition taking place really across the spectrum guys. This stock movers report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market moving headlines, listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg.com and on Apple CarPlay and Android Auto with the Bloomberg Business app.

4:26Cities are growing, but are they getting smarter? I'm Jacob Reaves, host of Economy is scale, a series exploring growth in key global sectors. And in this episode, we're diving into how innovation is being hardwired into urban development. Rohit Kumar from Seema's Advanta has this to say, Essentially AI will allow in the smart cities space to compress a lot of things. The speed will change. Dubai is one city embracing such technology as a growth engine and has also seen its population surge by a third in just five years. Dr. Safani, a tap-yes from engineering consultancy WSP says, And I think Dubai has learned a lot from sudden increase in population, which doesn't happen everywhere in the world and I think they reacted very well to it. They have a long term urban planning vision, which again doesn't happen everywhere in the world. Listen to the full episode, wherever you get your podcast. For big business, AI opened up a world of promise,

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