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Micron Technology is a type of semiconductor.
despite a better-than-expected earnings announcement from the memory chip producer, are down in after-hours trade. Micron (ticker: MU) reported revenue of $7.42 billion for the quarter ended June 3, up 36% year over year and higher than the Wall Street average of $7.23 billion. Micron had previously forecast sales of $6.9 billion to $7.3 billion, but CEO Sanjay Mehrotra told investors in May that the total would most likely be at or above the high end of that range.
Micron reported non-GAAP earnings of $1.88 per share, exceeding analysts’ expectations of $1.71 and the company’s own projection of $1.62 per share. Non-GAAP gross margins were 42.9 percent, which was higher than the 41.5 percent forecast. Micron expects revenue of $8.2 billion, plus or minus $200 million, for the current quarter, which is higher than the Street average of $7.9 billion. Micron expects non-GAAP profits of $2.30 per share for the quarter, up 10 cents from Wall Street’s estimate of $2.18 per share. Micron forecasts earnings of $2.23 per share, plus or minus 10 cents, under generally accepted accounting principles. Non-GAAP gross margin is expected to increase to 47 percent in the quarter, give or take a percentage point. Mehrotra stated in a statement, “Micron set various market and product revenue records in our third quarter and produced the highest sequential profitability improvement in our history.” On a non-GAAP basis, net income increased by 93 percent to $2.2 billion in the quarter. Mehrotra indicated on the company’s results call that supply of DRAM and NAND memory chips will remain tight into calendar 2022. The business said in materials prepared for the call that it expected “somewhat above 20%” DRAM industry bit growth in 2021, with supply falling short of demand. NAND bit demand is expected to climb in the mid-30% range, according to Micron, with supply once again falling short of demand. DRAM accounted for 73 percent of revenue in the most recent quarter, up 52 percent from a year prior, according to the business. NAND revenue increased by 9%. DRAM prices increased by 20% sequentially in the quarter, while NAND prices increased by a high single digit. Micron also announced a deal to sell its chip production fab in Lehi, Utah, to Intel.
Texas Instruments is a company that makes electronic instruments.
(TXN) in cash for $900 million. Tools and other assets would add another $600 million to the company’s value, according to the corporation. The corporation stated that it has sold part of the assets and would keep the balance to redeploy or sell to other purchasers. Micron is down 1.7 percent in after-hours trading after gaining 2.3 percent to $84.83 in Wednesday’s regular session. Eric J. Savitz can be reached at eric.savitz@barrons.com./n
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