Micron Shares Gain After 3rd-Quarter Results Beat Estimates

Micron Technology rose after hours Monday after the chipmaker reported fiscal-third-quarter results ahead of expectations.
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Micron Technology  (MU) - Get Report rose after hours Monday after the chipmaker reported fiscal-third-quarter results ahead of expectations. 

For the quarter ended May 28, the Boise, Idaho, company reported earnings of 71 cents a share, or an adjusted 82 cents, compared with 74 cents in the year-earlier quarter.

Revenue climbed 14% to $5.44 billion from $4.79 billion.

Analysts surveyed by FactSet produced a consensus estimate of net income of 64 cents a share, or an adjusted 75 cents, on revenue of $5.27 billion.

"We are ramping the industry's most advanced DRAM technology into production and have delivered more than 75% of our NAND volume as high-value solutions, supported by record [solid-state-drive] revenue in the quarter," President and Chief Executive Sanjay Mehrotra said in a statement. 

For the fourth quarter, Micron expects earnings of 78 cents to 98 cents a share, or an adjusted 95 cents to $1.15 a share. Revenue should come in at $5.75 billion to $6.25 billion.

Analysts in the FactSet survey are expecting the company to earn 71 cents a share, or an adjusted 79 cents, on revenue of $5.46 billion.

Last week, Micron was downgraded at BMO Capital Markets to market perform from outperform, with its price target cut to $55 from $60.

BMO analyst Ambrish Srivastava wrote in a commentary that he acted because the environment for data-center memory chips had worsened over the past few months, MarketWatch reported.

At last check Micron shares rose 5.8% to $51.99 a share. They'd closed the regular Monday session up 1.4% at $49.15. 

The shares have leaped 58% since they touched a 52-week low above $31 in mid-March. But they're still 20% below their 52-week high above $61, set in mid-February.