Memory-chip maker Micron Technology late Wednesday beat expectations for its fiscal first quarter and with its guidance for the current period. MU stock rose in extended trading.
The Boise, Idaho-based company lost an adjusted 95 cents a share on sales of $4.73 billion in the quarter ended Nov. 30. Analysts polled by FactSet had expected Micron to lose $1.01 a share on sales of $4.58 billion. In the year-earlier period, Micron lost an adjusted 4 cents a share on sales of $4.09 billion.
On Nov. 28, Micron raised its fiscal Q1 guidance for revenue and earnings, citing an improved supply and demand balance and better pricing.
With its fiscal Q1 report, Micron returned to sales growth after five quarters of declining sales on a year-over-year basis.
MU Stock Climbs After Report
For the current quarter, Micron predicted an adjusted loss of 28 cents a share on sales of $5.3 billion. That's based on the midpoint of its outlook.
Wall Street had been looking for Micron to lose 62 cents a share on sales of $4.97 billion in its fiscal second quarter. In the year-earlier period, Micron lost $1.91 a share on sales of $3.69 billion.
In after-hours trading on the stock market today, MU stock rose around 5% to 82.52. During the regular session Wednesday, MU stock dropped 4.2% to close at 78.69 amid an overall down day for stocks.
CEO Sees AI Sales Boost
"We expect our business fundamentals to improve throughout 2024, with record industry TAM (total addressable market) projected for calendar 2025," Chief Executive Sanjay Mehrotra said in a news release.
He added, "Our industry-leading High Bandwidth Memory for data center AI applications illustrates the strength of our technology and product road maps, and we are well positioned to capitalize on the immense opportunities artificial intelligence is fueling across end markets."
Micron makes two main types of memory chips: dynamic random-access memory, or DRAM, and Nand. DRAM chips act as the main memory in PCs, servers and other devices. Nand flash retains memory when power is turned off and provides longer-term data storage.
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