[Updates with after-hours price change at bottom of story.]
Memory-chip titan Micron Technology (MU) this afternoon reportedfiscal Q2 revenue and profit, at the high end of its revised forecast from early February for revenue, and above that revised EPS outlook, and forecast this quarter’s revenue and earnings higher as well.
Its shares fell initially in late trading by 8%, but quickly recouped a large part of that loss.
CEO Sanjay Mehrotra remarked that the company “executed exceptionally well,” citing “broad-based demand for our memory and storage solutions.”
“Our performance was accentuated by an ongoing shift to high-value solutions as we grew sales to our cloud, mobile and automotive customers and set new records for SSDs and graphics memory,” he added.
Continued Mehrotra, “Secular technology trends are driving robust demand for memory and storage, and Micron is well-positioned to address these growing opportunities.”
Revenue in the three months ending in February rose to $7.35 billion, yielding EPS of $2.82.
Analysts had been modeling $7.25 billion and $2.71 per share.
The company had updated its outlook in February, predicting revenue in a range of $7.2 billion to $7.35 billion, up from its prior forecast of $6.8 billion to $7.2 billion. EPS was updated at the time to a range of $2.70 to $2.75 from a prior range of $2.51 to $2.65. The revision was above consensus at the time and caused shares to spike, and contributed to a wave of price-target increases leading up to today.
For the current quarter, the company sees revenue in a range of $7.2 billion to $7.6 billion, above consensus for $7.29 billion. EPS is seen in a range of $2.76 to $2.90, versus consensus of $2.66 per share.
Micron stock is down $3.59, or 6%, at $55.39, and briefly dropped by 8%.
Update: Shares have been regaining lost ground, now down just 91 cents, or 1.4%, at $58.06.