EARNINGS ALERT: MU

earnings hitting the wire right now. So I'm going to get over to Molly for those numbers. All right let's dive right in here.S beat. We are at $33.42 for EPS for their fourth quarter. Better than the $31.83 that was ex here. As we look at rever the quarter. Also a considerable beat here as well by about $3 billion 54.23.Estims also coming in better than expected at 87%. Estimate looking for2. As we look at the breakdown acr their revenue, their mobile and client revenue coming in at looking for 12.95 automotivee and embedded revenue at 6.82 billion. That's considerably better than the 4.7 that was expected. Cloud memory, at 16.28 billion estimate, was looking 1 So beats across every metric that I just gave you. Now, as we'reking at their outlook, it's also coming in above the consensus here for thest quarter. They're looking for their EPS to continue to grow. New range is 37.15 to $39.15. The estimate was looking for 3602. So the estimate completelylow tS revenue. They're expecting 60 to $63 billion. estimate was. So blowing those numbers out o water margins they're expecting about 86.3% for the first quarter. That would mark a slight drop ingin a slight compression from the current 87%. Also justs below the expectation. Also, just getting their data center revenue number for this current quarter coming in at $18 billion. Eve the estimate was for 11.3 for their operating income comn at 44.64 billion. Estimate. Looking for 42.75. And yet I am looking over and we are just fractionally above the unchanged line. So I want to bring you here, get your thoughts on these numbers. I mean, they're coming in better than expected here. We've got nice metrics. We've got an outlook that's exceeding expectations here on everything but the adjusted gross margins. What are you seeing here? I agree with you. This is actually a really good report. And the guidance is actually relatively strong. I think the commentary at the bng of the report where it talks about investing more in order to scale up their business, and I'm paraphrasin that I think we have not gotten the CapEx guidance moving forward. I think thatbly could be your big headwind, that you could have cash flow potentially being impacted by that. If we do see that CapEx is going to ramp up considerably in order for them to expand their capacity, if you will, or spend more to help out and expand their capac But this is actually a really goodort. Very high bar going into this, Molly, I was looking at the options flows going into this and the 1314 hundred calls tha expiring this Friday were getting a lot of attention. And you're talking about a 30% 40% move to the upside. I think the market reallyted to see a very aggressive reato the upside. But a lot that premium could also then lock in those dealers in order to try to compr prices. So it's least for now. I'm lookinga CapEx. Maybe it's going to be on the conference call. If they do discuss it, I that would be the only thing that could actually create a little bit of a hiccup for this in the after hours trading. And I want to read that comment that Craig was just menti there from the chairman and CEO of micron. He says AI is becoming super intelligence. S I is what Sam referenced earlier in the show, and m enhances this intelligence and the competitiveness of our customers platforms. We are increasing our investments in technologies, products and manufacturing to help drive s I forward with ourmers and our strategic customer agreements provide added confidence in the durabil Micron's financial performance. He also talks about the record results that they've delivered in But Sam, I mean, KG brings up a good point. We don't have a numberere. So that could be some of what we're waiting for. But just as I read that to youe now up a percent. I mean, what are your takeaways here in the conversations that you throughout the week as we came into these earni What were investors and analysts looking for the strategic customer agreements part? That was a really big focus. And I was actually speaking to Paul Meeks earlier today, who been covering this stock since it went public in the 80s. And he that basically we got some clues about that in the previous quarter, that 20% of the revenue comes from these long term deals. It disclosed last time around 16 strategic customer agreements. Paul wants to see if we can get a higherrcy has signaled that it could polly be above 20%. He wants to see if it skews more than 50%. So more than half of therall total revenue once the street, he says, is convinced that the business is more skewed closely towards the long contracts, then we could perhaps see that valuation taking lift off, because obviously, as we know, because we talk about it all the time, it's trading at what, a seven tim forward p e right now. But look, we knew undoubtedly it was going to be good numbers today because you could ask anylyst that we had spoken to on the program, it is proving how it's a non cyclical type of business and how that has become less of a was even listening to the fact that this is the 14th quarter of the up cycle Usually it's 8 to 9. There doesn't seem to be any slowdown as far as AI spending is concerned. But it was all aboutns as well. Cleared the bar as far as that s an expectation that it would be north of 86%. You just wonder if that adjusted Q1 number that ad that fell slightly short is being scrutinized righ just because the bar was so high. AndG, I was just going to come to you about that. If you have any concerns about the s deceleration in the compression in the margin nuhat they're forecasting now for the first quarter versus the 80%, 87% they p for this current they're guiding to 86.3, I believe it was, which was just slightly below the 86.7% estimate. Is that enough to raise a of concern for you I think it just depends on on what's eating into that margin. And if they can explain it away, maybe it's g to be transportationsts,e maybee again, capacity issues, or the got to pay a little bit more of a premium. It kind just depends. And if they are able to kind of explain it away, then I think positive for them. You know what I actually do find very interesting as well. Great report. And the aute business is really not a big headline mover for this name. We know But if you actually look at their automotive business itself, it beat the ss expectations by about $2 billion. That was icing on the cake. If you kind of back that out. And you look at that segment coming in let's say i with the Street's expectations. It wasn't actually that much of a beat on the rev front on top line. So I'm not trying take anything away from this name. But if you just look at the top line revenue number as a whole, not all of over the top was really data center. A lot of that actually was also th automotive business, which goes unnoticed. But I mean, it's around $6.8 billion worth of of sales. So it can m meaningful difference when you're looking at the, the overall numbers. Yeah, we keep Seesawing around unchanged here from micron. The big question mark remains on that CapEx spend estimations range anywhere from about 40 to $50 billion in terms of what that expectation could be. But we'll hear from management coming up here in about 20 minutes. And hopefully they'll disclose that number.ut right now micron trading lower