Here’s an informative Seeking Alpha article about Micron. I generally concur with the author’s observations.
Micron - Good Times Continue (For Now)
Micron Technology sees continued momentum, as fourth-quarter numbers will surpass the record third quarter by a comfortable margin.
An earnings yield of >20% looks highly appealing, although it is clear that current earnings are not sustainable.
Micron reported stellar third-quarter results with revenues increasing by 40% to $7.80 billion. Sales came in at the high end of the preliminary $7.7-7.8 billion (already raised) guidance. Adjusted earnings came in at $3.15 per share, right within the raised guidance of $3.12-3.16 per share, which was actually increased by little over a quarter of a dollar back in May. Note that these are really cold-hard earnings, with GAAP earnings coming in at $3.10 per share; both earnings metrics are essentially identical, not being impacted by large “one-time” charges.
The current earnings bonanza results in earnings trend at $12 per share, or even a bit more, as the balance sheet is rapidly improving as well. Cash holdings have risen to nearly $7.6 billion, actually resulting in a modest net cash position of roughly $300 million at this point in time.
Micron is currently enjoying crazy earnings, has already reported a net cash position, has committed itself to returning a lot of cash to investors…
Micron Announces $10 Billion Share Repurchase Authorization
NEW YORK, May 21, 2018 (GLOBE NEWSWIRE) – Micron Technology, Inc. (NASDAQ:MU) today announced at its Analyst and Investor Event in New York City that its Board of Directors has authorized the discretionary repurchase of up to $10 billion of its outstanding common stock, in conjunction with newly announced plans to return at least 50% of free cash flow to stockholders beginning in fiscal 2019.
What’s not to like?