Micron Technology Inc. shares rose in the extended session Tuesday after the memory-chip maker’s quarterly results and outlook topped Wall Street expectations.
shares advanced 4% after hours, following a 2.8% rise in the regular session to close at $82.05.
For the fiscal second quarter, Micron reported net income of $2.27 billion, or $2 a share, compared with $603 million, or 53 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $2.14 a share, compared with 98 cents a share in the year-ago period.
Revenue rose to $7.77 billion from $6.24 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast adjusted earnings of $1.98 a share on revenue of $7.53 billion, based on Micron’s forecast of $1.85 to $2.05 a share on revenue of $7.3 billion to $7.7 billion.
“Micron’s excellent second quarter results exceeded the high end of our guidance for both revenue and margin, reflecting our strong execution,” said Sanjay Mehrotra, Micron’s chief executive, in a statement. “With outstanding first half results, Micron is on track to deliver record revenue and robust profitability in fiscal 2022.”
The Boise, Idaho-based chip maker expects adjusted third-quarter net income of $2.36 to $2.56 a share on revenue of $8.5 billion to $8.9 billion. Analysts had forecast $2.24 a share on revenue of $8.13 billion.
Micron specializes in DRAM and NAND memory chips. DRAM, or dynamic random access memory, is the type of memory commonly used in PCs and servers, while NAND chips are the flash memory chips used in smaller devices like smartphones and USB drives. Like most semiconductors, memory chips have been in great demand during the COVID-19 pandemic, and prices have shot higher.
Over the past 12 months, Micron shares have slipped 5%, while the PHLX Semiconductor Index
has risen 19%, the S&P 500 index
has gained 17%, and the tech-heavy Nasdaq Composite Index
has risen 12%.