MU CHWY First Takes

MU +10% looks very good with better revs GM and EPS

Investors will like this and now looks like clearer path to HBM3E ramp as we head into the 2H. The guide implies solid pricing in Q3.

Q2 Revs of $5.8B above buyside bogey of $5.5B and Street at $5.35
Q2 GM much better at 20% vs street at 14%
Q3 Rev guide for Q3 $6.4-$6.8B vs buyside bogey for $6.1-$6.2B and street at $6.0B
Q3 GM guide 26% vs street at 21%.
Q3 EPS guide also better 38c to 52c vs street at 24c

RESULTS: Q2
ADJ revenue $5.82B, +58% y/y, EST $5.35B
ADJ EPS $0.42 vs. loss/shr $1.91 y/y, EST loss/shr $0.24
ADJ operating income $204M vs. loss $2.08B y/y, EST loss $238.4M
Cash flow from operations $1.22B vs. $343M y/y, EST $2.14B
R&D expenses $832M, +5.6% y/y, EST $799.5M
ADJ operating expenses $959M, +4.7% y/y, EST $950.2M