Change of guard at Micron Technology
Sanjay Mehrotra, the last CEO of SanDisk as an independent company, assumed his role as the new CEO of Micron Technology (MU) on May 8, 2017, following his appointment in April. Mehrotra succeeded Mark Durcan as Micron Technology’s CEO.
Micron Technology revenues jump 59%
As Mehrotra settles into his new role at Micron Technology, investors want to see how he plans to improve the company. Mehrotra is inheriting a company on solid ground.
Micron reported its fiscal 2Q17[1. fiscal 2Q17 ended March 2, 2017] earnings on March 23, and the company’s scorecard was impressive. Its revenues of $4.65 billion rose 58.7% year-over-year and beat the consensus estimate of $4.64 billion.
What Mehrotra can contribute to MU’s growth
Western Digital acquired SanDisk because it perceived the company to be a great asset (QQQ). Mehrotra’s track record of building SanDisk into a solid company that attracts premium customers indicates that he could accomplish the same at Micron Technology.
Susquehanna analyst Mehdi Hosseini notes that Mehrotra’s NAND background would be useful to Micron Technology, allowing the company to transform into an integrated player in the memory business. Micron Technology could possibly accomplish that goal through a strategic acquisition such as buying a storage equipment vendor.