On Tuesday, in after-hours trade, Micron Technology (NASDAQ:MU) shares increased 4.6% to $46. What happened? Well, the incline is believed to have started after the memory-chip manufacturer posted its November-ending quarter results, all of which surpassed Wall Street forecasts.
The Report
In regards to Q1 net income, Micron Technology brought in $2.68 billion ($2.19 per share). When you add net income into the equation, it isn’t overly surprising to see that the stock increased Tuesday considering this fiscal Q1 net income is significantly higher than what was reported in the 2016 period ($180 million, or 16 cents per share).
Last year, Micron Technology revenue came in at $3.67, but this year it increased to $6.8 billion. As a point of perspective, TheStreet (NASDAQ:TST) was forecasting Micron revenue to come in at $6.44 billion and the company itself was expecting revenue to come in between the range of $6.1 billion to $6.5 billion.
During an analyst conference call, Sanjay Mehrotra, Chief Executive, stated that a lot of its success is thanks to cloud enterprise data-center growth, which has increased the demand for DRAM chip, which is a major part of the Boise, Idaho-based company. In fact, Micron reported that DRAM sales were responsible for 67% of revenue in the quarter, which is up from 61% in the 2016 quarter.
Further, Mehrotra disclosed that the company is making progress when it comes to their strategic priorities. Going forward, Micron Technology wants to focus more on increasing cost competitiveness, as well as strengthening its balance sheet. Mehrotra said that if the company were to achieve these goals, it will place in the company in the optimal position for reaping the benefits from demand trends that are inevitable.
Micron Technology also disclosed their outlook for the second quarter, stating that they believe earnings per share will come in between the range of $2.51 to $2.65. Further, Micron estimates revenue to come in between the range of $6.8 billion to $7.2 billion.
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