Memory chip manufacturer Micron technology (IN) on Wednesday evening exceeded expectations for its first fiscal quarter and its forecasts for the current period. MU stock rose in extended trading.
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The Boise, Idaho-based company lost an adjusted 95 cents per share on revenue of $4.73 billion in the quarter ended Nov. 30. Analysts polled by FactSet expected Micron to lose $1.01 per share on revenue of $4.58 billion. Over the past year, Micron lost 4 cents per share adjusted on revenue of $4.09 billion.
In November. 28, Micron raised its fiscal guidance for the first quarter for revenues and profits, citing a better balance between supply and demand and better prices.
With its fiscal first quarter report, Micron returned to sales growth after five quarters of year-over-year sales declines.
MU stock climbs after report
For the current quarter, Micron expects an adjusted loss of 28 cents per share on revenue of $5.3 billion. This is based on the midpoint of his outlook.
Wall Street was hoping Micron would lose 62 cents per share on revenue of $4.97 billion in its fiscal second quarter. Over the previous year, Micron lost $1.91 per share on revenue of $3.69 billion.
In exchanges outside of opening hours on the stock market today, MU stock rose about 5% to 82.52. During Wednesday’s regular session, MU stock fell 4.2% to close at 78.69 amid a general decline in stocks.
CEO sees AI sales increasing
“We expect our business fundamentals to improve throughout 2024, with record industry TAM (total addressable market) forecast for 2025,” Chief Executive Officer Sanjay Mehrotra said in a statement . Press release.
He added: “Our industry-leading high-bandwidth memory for data center AI applications illustrates the strength of our technology and product roadmaps, and we are well positioned to capitalize on the immense opportunities that artificial intelligence offers in end markets.
Micron makes two main types of memory chips: dynamic random access memory, or DRAM, and Nand. DRAM chips serve as the main memory in PCs, servers and other devices. Nand flash retains memory when power is removed and allows for longer-term data storage.
Follow Patrick Seitz on @IBD_PSeitz for more articles on consumer technology, software and semiconductor stocks.
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