MU stock rises as Micron exceeds Wall Street targets for second quarter



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Memory chip maker Micron technology (MU) Wednesday night beat Wall Street’s high expectations for the company’s fiscal second quarter. He also guided higher for the current period. The earnings report pushed MU’s stock higher in extended trading.




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The Boise, Idaho-based company earned 98 adjusted cents per share on sales of $ 6.24 billion in the quarter ended March 4. Analysts were expecting Micron to earn 95 cents a share on sales of $ 6.21 billion. Year over year, Micron’s profits jumped 118% while sales climbed 30%.

On March 3, Micron raised its sales and earnings guidance for the quarter. The earnings report also follows the announcement of Micron’s halt to XPoint 3D chip development, which dampened earnings.

“Micron’s strong fiscal performance in the second quarter reflects rapidly improving market conditions and continued strong execution,” Managing Director Sanjay Mehrotra said in a press release.

He added: “Our technological leadership in DRAM and Nand (memory chips) places Micron in an excellent position to capitalize on the age-old demand driven by AI and 5G, and to deliver new levels of user experience. and innovation through the data center and intelligent. edge.”

UM inventory advances in late transactions

Today, on the after-hours stock exchange, MU stock climbed 2%, nearly 90. During Wednesday’s regular session, MU stock rose 1.9% to 88, 21.

For the current quarter, Micron expects to earn $ 1.62 per adjusted share on sales of $ 7.1 billion. This is based on the midpoint of its forecast for the third fiscal quarter. Wall Street modeled Micron’s earnings of $ 1.32 per share on sales of $ 6.79 billion. In the prior year period, Micron’s profits were 82 cents a share on sales of $ 5.31 billion.

The DRAM market is “in serious shortage,” which has led to higher prices, Mehrotra said on a conference call with analysts. Meanwhile, the Nand market is showing signs of stabilization, he said.

DRAM chips act as the main memory of PCs, smartphones and other devices, in close collaboration with central processing units. Nand flash provides longer term data storage. DRAM accounted for 71% of Micron’s sales in the last quarter, with Nand flash chips contributing 26% of sales.

In the second quarter, Micron posted record sales of Nand chips for smartphones and automotive memory and storage chips. Micron also benefited from strong demand for laptops and an improving data center market.

MU stock is on IBD’s Big Cap 20 stock list.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software, and semiconductor inventory.

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