Micron shares rose after the company beat earnings estimates for its November quarter. The company also issued slightly weaker-than-expected guidance for its current quarter, but management noted that it thinks the quarter will represent a "cyclical bottom" for the business.
The stock was rising 3.66% to $54.98 a share Wednesday after the market's close, after having gained 0.075% in regular hours.
Adjusted earnings per share for the first quarter of fiscal year 2020 came in at 48 cents, beating Wall Street estimates of 47 cents. Revenue was $5.144 billion, beating analyst expectations of $4.99 billion. Earnings and revenue both fell year-over-year. Adjusted gross margin fell to 27.3% from 59% in the same quarter last year. Both drops were expected.
The company guided for current quarter revenue of between $4.5 billion and $4.8 billion, the midpoint of $4.65 billion being slightly weaker than analysts' forecast of $4.75 billion. EPS guidance was for a range between 31 and 41 cents, the midpoint of 36 cents being lower than analysts hopes for 39 cents.
"Micron posted solid first quarter results, delivering good profitability and positive free cash flow. With our strong execution and improving industry conditions, we are optimistic that Micron's fiscal second quarter will be the cyclical bottom for our financial performance," said CEO Sanjay Mehrotra. "Our significantly improved competitive position, dramatically stronger product portfolio, structurally higher profitability and investment-grade balance sheet position Micron very well to drive long-term shareholder value."
The stock is up 65% year-to-date.