Micron (MU) Tops Expectations For Q3

Micron Technology Inc. (NASDAQ:MU) started as a semiconductor design company back in 1978. A few years later, it launched the world’s smallest 256K DRAM. Micron grew over the years, gradually evolving into a leading manufacturer of DRAM and NAND chips. It is globally recognized for its innovative memory and storage solutions.

The Idaho-based chipmaker recently announced better-than-expected financial results for the third quarter ended June 3. Micron reported earnings of $1.74 billion, or $1.52 per share, well above $803 million, or 71 cents per share in the comparable period of 2020. On an adjusted basis, the company earned $1.88 per share, ahead of the consensus forecast of $1.72 per share.

Revenue came in at $7.42 billion, compared to $5.44 billion in the same period last year. Analysts, on average, were expecting Micron to post revenue of $7.23 billion. DRAM revenue in the quarter increased to $5.42 billion, representing 73 percent of the overall sales. Comparatively, NAND revenue jumped to $1.78 billion and accounted for 24 percent of the total sales.

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Commenting on the results, CEO Sanjay Mehrotra said, “Micron set multiple market and product revenue records in our third quarter and achieved the largest sequential earnings improvement in our history. Our industry-leading 1α DRAM and 176-layer NAND now represent a meaningful portion of our production, and Micron is in the best position ever to capitalize on the long-term demand trends across the data center, intelligent edge and user devices.”

Looking forward, Micron expects adjusted earnings in the range of $2.20 per share to $2.40 per share and revenue between $8 billion and $8.4 billion for the fourth quarter. The outlook is above analysts’ average estimate of $2.18 for earnings and $7.88 billion for revenue.

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