Micron Technology, Inc. (NASDAQ:MU) products are witnessing strong demand, which is evident from the firm’s second quarter results. For Q2 2018, revenue surged 8% versus the first quarter of 2018. The overall consolidated gross margin came at 58.1% as against 55.1% for Q1 2018. This increase can be attributed to company’s execution across its product portfolio.
Despite the strong performance, investors didn’t rejoice latest quarterly results, as the stock declined more than 7% on Friday. On contrary, analysts appeared to be delighted with the numbers, as 19 analysts revised their price targets on upside post results announcement.
Ruben Roy, an analyst with MKM Partners, revised price target on Micron stock to $65 from $58. He believes that the positive supply/demand balance that has sent company’s shares surging in recent months, which can continue in the upcoming period. Roy mentioned that Micron and its memory competitors can benefit from sustained positive demand trends along with a rational supply scenario in 2018. Stifel’s Kevin Cassidy upped price target on MU to $95 from $85 per share.
Commenting on the second quarter results, Sanjay Mehrotra, the CEO and President of Micron reported that their performance in Q2 2018 was remarkably well. This strong performance, in terms of strong revenue and increase cash flow, came on the back of strong execution. There was broad-based demand for company’s storage and memory solutions. They also recorded a shift to high-value solutions as the demand from mobile, automotive and cloud customers saw a jump, with new set new records for graphics memory and SSDs. Secular technology trends are leading strong demand for storage and memory, and Micron is all set to address these buzzing opportunities.
Investments in capital expenditures came at $2.11 billion, which led in adjusted free cash flows of $2.2 billion for Q2 2018. Cash, restricted cash and marketable investments stood at $8.68 billion.