Shares of Micron Technology Inc. soared in the extended session on Thursday after the memory-chip maker confirmed its earnings, which showed the industry was turning a corner.
Results and forecasts topped Wall Street estimates and rose 1.8% after the hour, with a near 2.6% rise to $ 79.11 in the regular session.
Micron reported net income of $ 803 million in the fiscal first quarter, or 71 cents per share, compared to $ 491 million, or 43 cents per share, in the year-ago period. Adjusted earnings, excluding stock-based compensation expenses and other items, were 78 cents per share, compared with 48 cents per share in the year-earlier period.
Revenue increased to $ 5.77 billion from $ 5.14 billion in the year-ago quarter. Analysts polled by FactSet estimated adjusted earnings of 68 cents on revenue of $ 5.66 billion.
DRAM sales accounted for 70% of revenue, the company said. Census and Network sales grew 29% to $ 2.55 billion, while mobile sales grew 3% to $ 1.5 billion in the quarter.
Micron expects fiscal second-quarter earnings of 68 centimeters to 82 centimeters on revenue of $ 5.6 billion to $ 6 billion, while analysts had estimated earnings of 67 cents on revenue of $ 5.55 billion.
“We are excited to strengthen the core principles of the DRAM industry,” said Micron CEO Sanjay Mehrotra. “For the first time in our history, Micron is a leader on DRAM and NAND technologies simultaneously, and we are in an excellent position to accelerate the digital transformation of the global economy fueled by AI, 5G, cloud, and intelligent edge.”
Micron specializes in DRAM and NAND memory chips. DRAM, or dynamic random access memory, is the type of memory commonly used in PCs and servers, while NAND chips are flash memory chips used in small devices such as USB drives and digital devices.
In the last 12 months, Micron shares have risen 36%, with a 57% increase on the PHLX Semiconductor Index SOX
18% increase by S&P 500 Index SPX,
And Nasdaq Composite Index Comp up 44%