Micron Technology, Inc. stock research
FY2023 Q4
Micron Technology (MU) Gross Margin — Quarter Ended Aug 31, 2023
Revenue increased from the prior quarter, while cost of revenue remained stable, leading to a smaller gross loss and an improved gross margin. Compared to the same quarter last year, revenue was lower and gross profit turned from a large surplus to a deficit, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Aug 31, 2023 · FY2023 Q4
Revenue increased from the prior quarter, while cost of revenue remained stable, leading to a smaller gross loss and an improved gross margin. Compared to the same quarter last year, revenue was lower and gross profit turned from a large surplus to a deficit, resulting in a weakened gross margin.
- The strongest observable margin driver is the reduction in gross loss relative to the prior quarter, as revenue grew while cost of revenue was unchanged.
- Compared to the immediately preceding quarter, gross margin improved from a negative level to a less negative level. Compared to the same quarter one year earlier, gross margin weakened from a positive level to a negative level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-10.8%
Gross profit
-$435.0M
Revenue
$4.0B
Cost of revenue
$4.4B
Quarter-over-quarter change
+7.0 pts
Year-over-year change
-50.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 1, 2022 | $4.1B | $893.0M | $3.2B | 21.9% |
| Mar 2, 2023 | $3.7B | -$1.2B | $4.9B | -32.7% |
| Jun 1, 2023 | $3.8B | -$668.0M | $4.4B | -17.8% |
| Aug 31, 2023 | $4.0B | -$435.0M | $4.4B | -10.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 1, 2023
+7.0 pts
Year-over-year change
FY2022 Q4
-50.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in gross loss relative to the prior quarter, as revenue grew while cost of revenue was unchanged.
Compared to the immediately preceding quarter, gross margin improved from a negative level to a less negative level. Compared to the same quarter one year earlier, gross margin weakened from a positive level to a negative level.
Monitor the trajectory of revenue relative to cost of revenue, as the current gross loss indicates that cost of revenue exceeds revenue.