logo
Plus   Neg
Share
Email

Micron Technology Q2 Tops Street, Outlook Strong; Shares Up 5%

Micron Technology Inc. (MU) Wednesday reported a profit for the second quarter that trumped Wall Street estimates, as did revenues. Shares of Micron gained over 5% on extended trading session after the technology company issued a strong revenue guidance above current estimates.

Boise, Idaho-based Micron's second-quarter profit dropped to $405 million or $0.36 per share from $1.62 billion or $1.42 per share last year.

On an adjusted basis, earnings dropped to $0.45 per share from $1.71 per share last year. On average, 26 analysts polled by Thomson Reuters estimate earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter dropped to $4.80 billion from $5.84 billion last year. Analysts had a consensus revenue estimate of $4.68 billion for the quarter.

Gross margin for the quarter dropped to 28.2 percent from 49.1 percent last year.

"Micron delivered solid second quarter results and revenue at the high end of the guidance range, despite the unfolding COVID-19 pandemic," said Micron Technology President and CEO Sanjay Mehrotra.

"I am grateful to our team for the excellent business execution we have achieved during this unprecedented situation. Their resilience, together with Micron's technology leadership, stronger product portfolio, and healthy balance sheet, give us confidence that we will emerge from this challenging time well-positioned to capture the robust long-term demand opportunities for memory and storage."

Moving ahead, Micron expects third-quarter revenues of $4.6 to $5.2 billion and adjusted earnings of $0.55 per share, plus or minus $0.15. Analysts currently estimate earnings of $0.53 per share and revenues of $4.87 billion.

MU closed Wednesday's trading at $42.50, down $0.77 or 1.78%, on the Nasdaq. The stock, however, gained $2.33 or 5.48% in the after-hours trade.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Avalon Furniture is recalling about 9,500 units of Cottage Town Bedroom Furniture collection sold through Rooms To Go due to violation of federal lead paint ban, the U.S. Consumer Product Safety Commission said in a statement. According to the agency, the base coat paint used on pieces within the furniture collection contains levels of lead that exceed the federal lead paint standard. Sanofi and Regeneron Pharmaceuticals, Inc. announced that the U.S. Phase 3 trial of arthritis drug Kevzara (sarilumab) 400 mg in COVID-19 patients requiring mechanical ventilation did not meet its primary and key secondary endpoints. In the trial, Kevzara was added to best supportive care compared to best supportive care alone (placebo). The companies have stopped the U.S. trial. Shares of Moderna Inc. (MRNA) slipped over 5% on Thursday after a report claimed that the biotechnology company's late-stage trial for a coronavirus vaccine will be delayed. Moderna is developing mRNA-1273 in collaboration with the National Institute of Allergy and Infectious Diseases (NIAID). The...
RELATED NEWS
Follow RTT