The shares of Micron Technology Inc. rose during Thursday’s extended session after earnings from the memory chip maker confirmed the industry is turning a corner.
Micron’s MU,
results and forecasts surpassed Wall Street’s estimates, and shares were up 1.8% after closing, after climbing 2.6% to close at $ 79.11 during the regular session.
Micron reported first-quarter net income of $ 803 million, or 71 cents a share, compared to $ 491 million, or 43 cents a share in the same period a year ago. Adjusted earnings, excluding stock-based compensation costs and other items, were 78 cents a share, compared to 48 cents a share in the same period a year ago.
Revenue increased from $ 5.14 billion in the same quarter a year ago to $ 5.77 billion. Analysts polled by FactSet had predicted adjusted earnings of 68 cents a share on revenue of $ 5.66 billion.
DRAM sales accounted for 70% of sales, the company said. Computer and network sales were up 29% to $ 2.55 billion, while mobile sales were up 3% for $ 1.5 billion in revenue in the quarter.
Micron expects adjusted fiscal profit for the second quarter of 68 cents to 82 cents a share on sales of $ 5.6 billion to $ 6 billion, while analysts had forecast profit of 67 cents a share on sales of $ 5. 55 billion.
“We are excited to strengthen the fundamentals of the DRAM industry,” said Sanjay Mehrotra, Micron’s Chief Executive. “For the first time in our history, Micron is simultaneously leading the way in DRAM and NAND technologies, and we are in an excellent position to capitalize on the accelerated digital transformation of the global economy, powered by AI, 5G, cloud and the intelligent advantage. “
Micron specializes in DRAM and NAND memory chips. DRAM, or dynamic random access memory, is the type of memory commonly used on PCs and servers, while NAND chips are the flash memory chips used in USB drives and smaller devices, such as digital cameras.
In the past 12 months, Micron shares have gained 36%, compared to a 57% rise on the PHLX Semiconductor Index SOX,
an 18% increase through the S&P 500 index SPX,
and a 44% gain from the Nasdaq Composite Index COMP,