Micron Technology Inc shares surged in the extended session on Thursday after the memory chip maker’s earnings confirmed the industry was turning into a turning point.
Results and expectations beat Wall Street estimates, and stocks rose 1.8% after hours, after surging 2.6% to close at $ 79.11 in the regular session.
Micron reported net income for the first quarter of the fiscal year of $ 803 million, or 71 cents a share, compared to $ 491 million, or 43 cents a share, in the same period last year. Adjusted earnings, which do not include equity-based compensation expenses and other items, were 78 cents a share, compared to 48 cents a share in the same period last year.
Revenue rose to $ 5.77 billion from $ 5.14 billion in the first quarter of last year. Analysts polled by FactSet had forecast adjusted earnings of 68 cents a share from revenue of $ 5.66 billion.
The company said DRAM sales accounted for 70% of revenue. Computing and networking sales increased 29% to $ 2.55 billion, while mobile phone sales increased 3% to $ 1.5 billion in revenue for the quarter.
Micron expects adjusted second-quarter financial earnings of 68 cents to 82 cents per share in revenue from $ 5.6 billion to $ 6 billion, while analysts expected earnings of 67 cents per share from revenue of $ 5.55 billion.
“We are excited to enhance the fundamentals of the dirham industry,” said Sanjay Mehrotra, CEO of Micron. “For the first time in our history, Micron is at the forefront of DRAM and NAND technologies at the same time, and we are in an excellent position to benefit from the accelerated digital transformation of the global economy powered by AI, 5G, cloud and the smart edge.”
Micron specializes in DRAM and NAND memory chips. DRAM, or dynamic random-access memory, is the type of memory commonly used in 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’s shares have gained 36%, compared to a 57% increase in the PHLX Semiconductor SOX Index.
18% rise in the S&P 500 SPX,
And a gain of 44% for the Nasdaq Composite Index,