Jim Cramer Breaks Down Micron's Earnings

Here's what Jim Cramer thinks about Micron's earnings.
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Micron (MU) - Get Report is Real Money's stock of the day.

Jim Cramer weighs in on the earnings. 

TheStreet's Eric Jhonsa broke down Micron's earnings.

On Tuesday afternoon, Micron reported November quarter (fiscal first quarter) revenue of $7.91 billion (up 15% annually) and non-GAAP EPS of $2.97 (up 21%). Revenue was below an $8 billion consensus; EPS, benefiting from $1.8 billion worth of stock buybacks, beat a $2.95 consensus.

More importantly, on its earnings call, the memory giant guided for February quarter revenue of $5.7 billion to $6.3 billion (down 18% annually at the midpoint) and EPS of $1.65 to $1.85, below a consensus of $7.26 billion and $2.39. The company also cut its fiscal 2019 (ends in Aug. 2019) capital spending budget to a range of $9 billion to $9.5 billion from one of $10.5 billion, plus or minus 5%.

Here are Jhonsa's five takeaways from the earnings report:

  • Micron Is Offering Cautious Outlooks on 2019 DRAM and NAND Demand
  • The Company Sees Several Near-Term Issues Weighing on Sales
  • Management Is Optimistic Demand Will Improve in the Second Half of 2019
  • Cost Reductions Will Prop Up Margins to an Extent
  • Buybacks Will Continue