Memory-chip maker Micron Technology (MU) late Wednesday beat Wall Street’s targets for its fiscal third quarter and topped estimates with its outlook. But MU stock dropped in extended trading after the Micron earnings report.
The Boise, Idaho-based company earned an adjusted $1.88 a share on sales of $7.42 billion in the quarter ended June 3. Analysts expected Micron earnings of $1.72 a share on sales of $7.24 billion. On a year-over-year basis, Micron earnings jumped 129% while sales increased 36%.
For the current quarter, Micron expects to earn an adjusted $2.30 a share on sales of $8.2 billion. Wall Street was modeling earnings of $2.18 a share on sales of $7.88 billion in Micron’s fiscal fourth quarter. In the year-earlier period, Micron earned an adjusted $1.08 a share on sales of $6.06 billion.
“Micron set multiple market and product revenue records in our third quarter and achieved the largest sequential earnings improvement in our history,” Chief Executive Sanjay Mehrotra said in a news release.
He added, “Micron is in the best position ever to capitalize on the long-term demand trends across the data center, intelligent edge and user devices.”
MU Stock Drops In Late Trades
In after-hours trading on the stock market today, MU stock fell 1.5%, near 83.70. During the regular session Wednesday, MU stock climbed 2.5% to 84.98.
In other news, Micron announced a deal to sell its Lehi, Utah, chip fabrication plant to Texas Instruments (TXN). The economic value for Micron from the sale is $1.5 billion, comprised of $900 million in cash from TI from the sales transaction, and about $600 million in value from select tools and other assets. Micron has sold some of these assets and will retain the remainder to redeploy to its other manufacturing sites or sell to other buyers.
MU stock has been consolidating for the past 12 weeks with a buy point of 97.06, according to IBD MarketSmith charts. The buy point is 10 cents above the stock’s 21-year high of 96.96, reached on April 12.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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