Micron Technology Inc. shares surged in the extended session Monday after the memory-chip maker’s earnings and outlook topped Wall Street estimates.
Micron
MU,
-1.17%
shares rallied 7% after hours, following a 1.2% decline in the regular session to close at $82.03.
For the fiscal first quarter, Micron reported net income of $2.31 billion, or $2.04 a share, compared with $803 million, or 71 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $2.16 a share, compared with 78 cents a share in the year-ago period.
Revenue rose to $7.69 billion from $5.77 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast adjusted earnings of $2.10 a share on revenue of $7.68 billion, based on Micron’s forecast of $2 to $2.20 a share on revenue of $7.45 billion to $7.85 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.
The company also said it spent $3.27 billion on capital expenditures in the first quarter.
Micron said DRAM sales made up 73% of revenue, or $5.61 billion, in the fiscal first quarter, for a 38% year-over-year gain, while NAND accounted for 24% of revenue, or $1.85 billion, up 19% year over year. Analysts on average had expected DRAM sales of $5.54 billion, and NAND sales of $2 billion, according to FactSet.
“We are now shipping our industry-leading DRAM and NAND technologies across major end markets, and we delivered new solutions to data-center, client, mobile, graphics and automotive customers,” said Sanjay Mehrotra, Micron’s chief executive, in a statement. “As powerful secular trends including 5G, AI and EV adoption fuel demand growth, our technology leadership and world-class execution position us to create significant shareholder value in fiscal 2022 and beyond.”
Micron expects adjusted second-quarter net income of $1.85 to $2.05 a share on revenue of $7.3 billion to $7.7 billion. Analysts had forecast $1.84 a share on revenue of $7.29 billion.
Over the past 12 months, Micron shares have gained 15%, while the PHLX Semiconductor Index
SOX,
-0.76%
has risen 35%, the S&P 500 index
SPX,
-1.14%
has gained 23%, and the tech-heavy Nasdaq Composite Index
COMP,
-1.24%
has risen nearly 18%. Back on April 12, Micron shares closed at $95.59, just short of their all-time closing high of $96.56, set on July 14, 2000.
