Micron Technology late Wednesday crushed estimates for its fiscal third quarter on strong data center-related sales. It also guided higher for the current period. Micron stock rallied in extended trading.
The memory-chip maker earned an adjusted $1.91 a share on sales of $9.3 billion in the quarter ended May 29. Analysts polled by FactSet had expected Micron to earn $1.60 a share on sales of $8.86 billion. On a year-over-year basis, Micron earnings soared 208% while sales jumped 37%.
For the current quarter, Micron forecast adjusted earnings of $2.50 a share on sales of $10.7 billion. That's based on the midpoint of its guidance. Wall Street was looking for earnings of $2.03 a share on sales of $9.9 billion in fiscal Q4. In the same quarter last year, the Boise, Idaho-based company earned an adjusted $1.18 cents a share on sales of $7.75 billion.
In after-hours trading on the stock market today, Micron stock rose nearly 4% to 132.10. During the regular session Wednesday, Micron stock slid 0.5% to close at 127.25.
Micron makes two main types of memory chips: DRAM and Nand. DRAM chips act as the main memory in PCs, servers and other devices, working closely with central processing units. Nand flash provides longer-term data storage.
Lately, Micron has gotten a boost from providing high-bandwidth memory (HBM) for data centers running artificial intelligence applications. On June 10, Micron announced that it had begun shipping HBM4, its next-generation high-bandwidth memory product for AI data centers.
Micron Stock Has Top Composite Rating
"Micron delivered record revenue in fiscal Q3, driven by all-time-high DRAM revenue including nearly 50% sequential growth in HBM revenue," Chief Executive Sanjay Mehrotra said in a news release. "Data center revenue more than doubled year-over-year and reached a quarterly record, and consumer-oriented end markets had strong sequential growth."
Micron stock ranks first out of 10 stocks in IBD's Computer-Data Storage industry group, according to IBD Stock Checkup. It has a best-possible IBD Composite Rating of 99.
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