Micron Higher After Revenue, Adjusted Profit Beat Estimates

Micron Technology  (MU) - Get Report rose after the largest U.S. maker of memory chips reported fiscal-second-quarter revenue and adjusted earnings that exceeded Wall Street estimates.

Shares of the Boise, Idaho, company at last check rose 2.3% to $90.22. Micron closed the regular Wednesday trading session 1.9% higher at $88.21.

Micron on Wednesday reported adjusted earnings more than doubled to 98 cents a share from 45 cents a share in the year-earlier period.

GAAP net income rose 49% to $603 million, or 53 cents a share, from $405 million, or 36 cents a share, a year earlier. 

Revenue for the quarter ended March 4 rose 30% to $6.24 billion from $4.8 billion.

A survey of analysts by FactSet produced consensus estimates of GAAP earnings of 67 cents a share, or an adjusted 95 cents a share, on revenue of $6.19 billion.

Micron Higher After Raising Earnings Estimates

"Our technology leadership in both DRAM and NAND places Micron in an excellent position to capitalize on the secular demand driven by [Artificial Intelligence] and 5G," President and Chief Executive Sanjay Mehrotra said in a statement.

Micron also projected a robust outlook for the current period as demand for semiconductors for computers and smartphones rises.

Revenue for the fiscal third quarter is expected to come in at $7.1 billion, plus or minus $200 million, a rise of 14% from fiscal-second-quarter revenue.

Analysts surveyed by FactSet were looking for $6.83 billion in fiscal Q3.

Micron expects GAAP earnings of $1.52 a share, plus or minus 7 cents. The FactSet survey is calling $1.16, or an adjusted $1.32.

On March 3 the company offered guidance of 93 cents to 98 cents a share. The shares have fallen 5.6% since then. 

For the year, analysts project revenue of $26.32 billion.

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TheStreet.com's founder Jim Cramer recently commented on Micron's status vs. other chipmakers.