Micron Stock Rallies On Strong Earnings And An Upbeat Outlook

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Memory chip maker

Micron

Technology posted better-than-expected results for its latest quarter on Tuesday. The firm also provided an optimistic outlook that exceeded Wall Street’s estimates.

Micron (ticker: MU) shares were up nearly 4% in after hours trading. That follows a 2.7% gain during Tuesday’s regular session, in which shares closed at $ 82.05.

For its fiscal second quarter ended March 3, Micron reported revenue of $ 7.8 billion, up 25% from a year ago and above the company’s target of $ 7.5 billion. Adjusted profits were $ 2.14 a share, up from 98 cents a year ago and above the company’s forecast of $ 1.95 a share.

Under generally accepted accounting principles, the company earned $ 2 a share, up from 53 cents a year earlier. Non-GAAP gross margin in the quarter expanded to 47.8%, from 47% in the fiscal first quarter, and 32.9% a year ago.

“Micron’s excellent second quarter results exceeded the high end of our guidance for both revenue and margin, reflecting our strong execution,” Micron CEO Sanjay Mehrotra said in a statement. “We’re leading the industry in technology across DRAM and NAND, and our product portfolio momentum is accelerating.”

For the fiscal third quarter, Micron is projecting revenue of $ 8.7 billion, give or take $ 200 million, with a gross margin of 48%, plus or minus a point, and non-GAAP profits of $ 2.46 a share, give or take a dime. The Wall Street consensus had called for $ 8.1 billion in revenue and non-GAAP profits of $ 2.24 a share.

Write to Eric J. Savitz at eric.savitz@barrons.com