Micron Technology Inc. shares rose in the extended session Wednesday after the Boise, Idaho-based chip maker’s earnings and outlook topped Wall Street estimates.
rose 2.8% after hours, following a 1.9% gain in the regular session to close at $88.21.
Micron reported fiscal second-quarter net income of $603 million, or 53 cents a share, compared with $405 million, or 36 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 98 cents a share, compared with 45 cents a share in the year-ago period.
Revenue rose to $6.24 billion from $4.8 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast adjusted earnings of 95 cents a share on revenue of $6.19 billion.
Micron said DRAM sales made up 71% of revenue, or $4.43 billion, in the fiscal second quarter, while NAND accounted for 26% of revenue, or $1.62 billion.
Analysts on average expected DRAM sales of $4.3 billion, up from $3.08 billion in the year-ago period, and NAND sales of $1.6 billion, up from last year’s $1.51 billion, according to FactSet.
DRAM, or dynamic random access memory, is the type of memory commonly used in PCs and servers, while NAND chips are the flash memory chips used in smaller devices like smartphones and USB drives.
Compute and network sales rose 34% to $2.64 billion, while mobile sales surged 44% for $1.81 billion in revenue for the quarter.
Micron had upped its forecast considerably earlier in the month with an earnings outlook of 93 cents to 98 cents a share on revenue of $6.2 billion to $6.25 billion.
“We are in an excellent position to capitalize on the strong demand for memory and storage driven by artificial intelligence and 5G across the data center, the intelligent edge, and user devices,” said Micron Chief Executive Sanjay Mehrotra in a statement.
Micron expects adjusted fiscal third-quarter earnings of $1.55 to $1.69 a share on revenue of $6.9 billion to $7.3 billion, while analysts had forecast earnings of $1.32 a share on revenue of $6.83 billion.
Over the past 12 months, Micron shares have gained 110%, compared with a 107% increase on the PHLX Semiconductor Index
a 54% rise by the S&P 500 index
and a 72% gain by the Nasdaq Composite Index