Micron Technology Inc (NASDAQ:MU) saw its shares continue its trek higher Wednesday after posting market beating fourth quarter results on Tuesday.
The company’s outlook for its first quarter also surpassed market expectations.
Sustainability of current memory-chip cycle
The company said it is forecasting revenue of US$6.1bn to US$6.5bn in the first quarter, against market consensus of US$6bn.
It is expecting earnings per share of between US$2.09 and US$2.23, way higher than Wall Street’s estimate of US$1.82.
The chipmaker reported fiscal fourth-quarter net income of US$2.37bn, or US$1.99 a share, against a loss of US$170mln, or 16 US cents a share, the year before.
Adjusted earnings came in at US$2.02 a share. Revenue rose to US$6.14bn from US$3.22bn in the year-ago period. Wall Street had expected US$1.82 a share on revenue of US$5.94bn.
In a conference call held on Tuesday, Sanjay Mehrotra, Micron’s president and chief executive, citing the expanding business in smartphones, flash memory and cloud-computing data centers, said he believed there are “very solid secular trends here that are long term in nature,” in reply to a question on the sustainability of the current memory-chip cycle.
In premarket trade, its shares rose 5.35% at US$36.01, and in the regular session, they surged 8.41% to US$37.06 each.