Micron Technology (MU) 2021 Q2 Earnings Preview

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. Over the years, Micron gradually evolved into a leading manufacturer of DRAM and NAND chips. It is globally recognized for its innovating memory and storage solutions.

The Boise, Idaho-based memory chipmaker recently announced better-than-expected results for the second quarter. Micron reported earnings of $603 million, or 53 cents per share for the three months ended March 4, up from $405 million, or 36 cents per share in the comparable quarter of 2020. On an adjusted basis, the company earned 98 cents per share, above the consensus forecast of 95 cents per share.

Revenue for the quarter increased to $6.24 billion, as compared to $4.8 billion in the year-ago quarter. Analysts on average were looking for revenue of $6.19 billion. Revenue from DRAM sales came in at $4.43 billion and represented 71 percent of the total revenue. Comparatively, revenue from NAND reached $1.62 billion and accounted for 26 percent of the total revenue.

Speaking on the results, CEO Sanjay Mehrotra said in a statement, “Micron’s strong fiscal second-quarter performance reflects rapidly improving market conditions and continued solid execution. Our technology leadership in both DRAM and NAND places Micron in an excellent position to capitalize on the secular demand driven by AI and 5G, and to deliver new levels of user experience and innovation across the data center and intelligent edge.”

Micron also issued its financial outlook for the third quarter. The company expects adjusted profit in the range of $1.55 per share to $1.69 per share and revenue between $6.9 billion to $7.3 billion for the current quarter. The guidance was better than the consensus forecast of $1.32 per share for earnings and $6.83 billion for revenue.

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