Micron Technology vs. Advanced Micro Devices Earnings Comparison

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Compare MU's full year 2023 earnings and the first 2 quarters of 2024 with AMD

Let's compare the financial performance of Micron Technology (MU) and Advanced Micro Devices (AMD) based on their earnings and other financial metrics for the full year 2023 and the first two quarters of 2024.

Micron Technology (MU)

Full Year 2023 Financials:

• Revenue: $15.54 billion
• Gross Profit: -$1.416 billion (indicating a negative gross profit margin)
• Net Income: -$5.833 billion (indicating a net loss)
• Operating Income: -$5.466 billion
• EBITDA: $2.483 billion
• Free Cash Flow: -$6.118 billion (negative, indicating cash outflow)
• Total Debt: $13.33 billion
• Current Ratio: 4.46 (indicating strong liquidity)
• Piotroski F-Score: 4 (suggesting moderate financial health)

First Two Quarters of 2024:

• Q1 2024 Revenue: $4.726 billion
• Q1 2024 Net Income: -$1.234 billion
• Q2 2024 Revenue: $5.824 billion
• Q2 2024 Net Income: $793 million (indicating a return to profitability)
• Q2 2024 Gross Profit Margin: 18.53% (positive, indicating improvement)
• Q2 2024 Free Cash Flow: -$164.86 million (still negative but improved)
• Total Debt: $13.72 billion
• Current Ratio: 3.74 (still strong liquidity)
• Piotroski F-Score: 6 (improved financial health)

Advanced Micro Devices (AMD)

Full Year 2023 Financials:

• Revenue: $22.68 billion
• Gross Profit: $10.46 billion
• Net Income: $854 million
• Operating Income: $401 million
• EBITDA: $4.145 billion
• Free Cash Flow: $1.122 billion (positive, indicating cash inflow)
• Total Debt: $3.01 billion
• Current Ratio: 2.51 (indicating good liquidity)
• Piotroski F-Score: 6 (suggesting good financial health)

First Two Quarters of 2024:

• Q1 2024 Revenue: $5.473 billion
• Q1 2024 Net Income: $123 million
• Q2 2024 Revenue: $5.835 billion
• Q2 2024 Net Income: $265 million
• Q2 2024 Gross Profit Margin: 49.08% (strong margin)
• Q2 2024 Free Cash Flow: $439.07 million (positive)
• Total Debt: $2.25 billion
• Current Ratio: 2.82 (good liquidity)
• Piotroski F-Score: 7 (strong financial health)

Comparison and Analysis

1. Revenue and Profitability:

   • AMD has consistently higher revenue and profitability compared to MU. AMD's gross profit margins are significantly higher, indicating better cost management and pricing power.
   • MU struggled with profitability in 2023 but showed improvement in the second quarter of 2024, returning to profitability.

2. Net Income:

   • AMD maintained positive net income throughout the periods, while MU experienced a net loss in 2023 but turned profitable in Q2 2024.

3. Cash Flow:

   • AMD has positive free cash flow, indicating efficient cash management and the ability to generate cash from operations.
   • MU had negative free cash flow in 2023, but the situation improved in 2024, although it remained negative.

4. Debt and Liquidity:

   • MU has a higher total debt compared to AMD, but both companies have strong liquidity positions, as indicated by their current ratios.
   • AMD's lower debt levels and positive cash flow position it more favorably in terms of financial stability.

5. Financial Health:

   • AMD has a higher Piotroski F-Score, indicating stronger financial health compared to MU.

Conclusion

Overall, AMD appears to be in a stronger financial position compared to MU, with higher revenue, profitability, and positive cash flow. MU has shown improvement in 2024, but it still faces challenges in terms of cash flow and profitability. Investors should consider these factors along with market conditions and company strategies before making investment decisions.

For more detailed information, you can refer to the sources provided:

• Source for Micron's Financials
• Source for AMD's Financials

Rating:

• MU: 3/5
• AMD: 4/5

Please remember that this is not financial advice, and it's important to conduct your own research and consider your financial situation before making investment decisions.