Micron technology (MU) – Get report it rose Monday after hours after the chipmaker reported fiscal third-quarter results above expectations.
For the quarter ended May 28, the Boise, Idaho company reported earnings of 71 cents a share, or 82 adjusted cents, compared to 74 cents in the prior-year quarter.
Revenue increased 14% to $ 5.44 billion from $ 4.79 billion.
Analysts surveyed by FactSet produced a consensus estimate of 64 cents per share, or 75 adjusted cents, on earnings of $ 5.27 billion.
“We are incorporating the industry’s most advanced DRAM technology into production and have delivered over 75% of our NAND volume as high-value solutions, backed by record-breaking [solid-state-drive] revenue in the quarter, “President and CEO Sanjay Mehrotra said in a statement.
For the fourth quarter, Micron expects earnings of 78 cents to 98 cents per share, or 95 cents adjusted to $ 1.15 per share. Revenue should be $ 5.75 billion to $ 6.25 billion.
Analysts in the FactSet survey expect the company to earn 71 cents a share, or 79 adjusted cents, on revenue of $ 5.46 billion.
Last week, Micron was downgraded at BMO Capital Markets for above-market performance, with a target price reduced from $ 60 to $ 55.
BMO analyst Ambrish Srivastava wrote in a comment that he acted because the environment for data center memory chips had worsened in recent months, MarketWatch reported.
In the latest check, Micron shares rose 5.8% to $ 51.99 per share. They closed the regular Monday session 1.4% at $ 49.15.
The shares have risen 58% since they touched a 52-week low above $ 31 in mid-March. But they are still 20% below their 52-week high above $ 61, set in mid-February.
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