Micron Technology Inc. ‘s shares rose in the extended session on Thursday after the memory chip maker’s earnings confirmed that the industry was taking a turn.
Micron is MU,
the results and forecast topped Wall Street estimates, and equities rose 1.8% after hours, after rising 2.6% to $ 79.11 in the ordinary session.
Micron posted fiscal net income of $ 803 million in the first quarter, or 71 cents per share, compared to $ 491 million, or 43 cents per share, in the previous year. Adjusted earnings, excluding share-based compensation costs and other items, were 78 cents per share, compared to 48 cents per share in the previous year.
Revenue rose to $ 5.77 billion from $ 5.14 billion in the previous quarter. Analysts polled by FactSet predicted adjusted earnings of 68 cents per share on revenue of $ 5.66 billion.
The company accounted for 70% of the revenue from DRAM. Computer and network sales rose 29% to $ 2.55 billion, while mobile sales rose 3% to $ 1.5 billion in revenue for the quarter.
Micron expects second-quarter fiscal adjusted adjusted earnings from 68 cents to 82 cents per share on revenue of $ 5.6 billion to $ 6 billion, while analysts forecast 67 cents per share revenue of $ 5.55 billion has.
“We are excited about strengthening the fundamentals of the DRAM industry,” said Sanjay Mehrotra, CEO of Micron. “For the first time in our history, Micron is simultaneously introducing DRAM and NAND technologies, and we are in an excellent position to take advantage of the rapid digital transformation of the world 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 computers and servers, while NAND chips are the flash memory chips used in USB drives and smaller devices, such as digital cameras.
Over the past 12 months, Micron shares have risen 36%, compared to a 57% increase on the PHLX Semiconductor Index SOX,
an increase of 18% through the S&P 500 index SPX,
and a gain of 44% through the Nasdaq Composite Index COMP,