The shares of Micron Technology Inc. they rose on Thursday in the extended session after the memory chip maker’s profits confirmed the industry is just around the corner.
Micron MU,
Results and forecasts exceeded Wall Street estimates, and shares rose 1.8% after hours, after a 2.6% rise to close at $ 79.11 in the ordinary session.
Micron reported first-quarter net tax revenue of $ 803 million, or 71 cents per share, compared to $ 491 million, or 43 cents per share, in the prior-year period. Adjusted earnings, which exclude share-based compensation expenses and other items, were 78 cents per share, compared to 48 cents per share in the prior year period.
Revenue rose to $ 5.777 billion from $ 5.14 million in the previous quarter. Analysts surveyed by FactSet had forecast adjusted earnings of 68 cents per share on revenue of $ 5.666 billion.
DRAM sales accounted for 70% of revenue, the company said. Computing and network sales rose 29% to $ 2.55 billion, while mobile phone sales rose 3% to $ 1.5 billion in revenue during the quarter.
Micron expects adjusted second-quarter tax gains of 68 cents to 82 cents per share on revenue of $ 5.6 billion to $ 6 billion, while analysts had expected earnings of 67 cents per share on revenue of $ 5.555 billion.
“We are excited about strengthening the foundations of the DRAM industry,” said Sanjay Mehrotra, chief executive of Micron. “For the first time in our history, Micron is simultaneously leading DRAM and NAND technologies, and we are in an excellent position to benefit from the acceleration of the digital transformation of the global AI-driven economy, 5G , the cloud and smart benefits “.
Micron specializes in DRAM and NAND memory chips. DRAM, or dynamic random access memory, is the type of memory commonly used in computers and servers, while NAND chips are flash memory chips used in USB drives and smaller devices. such as digital cameras.
In the last twelve months, Micron shares have gained 36%, compared to a 57% increase in the PHLX Semiconductor SOX Index,
an 18% rise in the S&P 500 SPX index,
and a 44% gain from the Nasdaq Composite Index COMP,