NEW YORK (TheStreet) -- Shares of Micron Technology (MU - Get Report) surged in pre-market trading, after the semiconductor and flash memory maker posted second-quarter results that beat Wall Street's estimates.
For the fiscal second-quarter, Micron earned 85 cents a share, excluding items, generating $4.11 billion, up 98% year over year. Analysts surveyed by Thomson Reuters were expecting 76 cents a share on $3.985 billion.
Boise, Idaho-based Micron noted that pricing for memory products, including DRAM and NAND, would decline by a low single-digit percent in the coming quarter, after pricing has been strong in recent memory, thanks to industry consolidation. In July 2013 Micron acquired bankrupt Japanese competitor Elpida Memory.
The company noted cash flows from operations for the second quarter were $1.39 billion, while spending $565 million in capital expenditures. Micron ended the quarter with $5.06 billion in cash and marketable securities.
During the quarter, NAND Flash revenue rose 11% sequentially, thanks in part to a surge in volume, up 35%, as prices weakened 18%. Revenues from DRAM products were essentially unchanged sequentially. Micron's gross margin was 34%, compared to 32% in the fiscal fist-quarter, aided by higher DRAM gross margin.
Shares of Micron rose in pre-market Friday trading, gaining 4.6% to $25.10.
Server DRAM grew 70% y/y on flat y/y server units. If correct, we see SUSTAINED EPS of at least $5 per share." Sterne Agee analyst Vijay Rakesh (Buy, $30 PT) "MU put up a solid FebQ with EPS of $0.85 (Street=$0.73), and tracking towards $3+ EPS annualized. Key was as MU noted stable to improving ASPs in both DRAM and NAND, with MayQ DRAM ASPs guided down only "low single digits" and improving q/q NAND ASP trends into MayQ (a positive for SNDK also) despite Hynix Wuxi now fully on line. With pricing stable in the weak Feb-MayQ, MU will have upside into a stronger Aug-NovQ with mobileDRAM, SSD, etc. Raising estimates and PT to $30."
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