Top estimate of Micron’s earnings and outlook, chip maker selling Utah factory to Texas Instruments

Micron Technology Inc. reported higher-than-expected revenue and outlook for Wall Street on Wednesday, with chip makers occupying one of its facilities at Texas Instruments Inc. Announced to sell to.

Third quarter is Micron
+ 2.47%

We reported a net profit of $ 1.74 billion ($ 1.52 per share) compared to $ 803 million (71 cents per share) in the year-ago quarter. Adjusted earnings, excluding stock-based compensation and other items, were $ 1.88 per share, compared to 82 cents in the year-ago quarter. Revenue increased from $ 5.44 billion in the year-ago quarter to $ 7.42 billion.

Analysts surveyed by FactSet forecast adjusted earnings of $ 1.72 per share for $ 7.23 billion in earnings. In late May, Micron said it expects sales to reach more than $ 7.3 billion. Guidance provided at the end of March.. We forecast revenue of $ 1.55 to $ 1.69 per share.

“Micron set multiple market and product revenue records in the third quarter, achieving the largest continuous revenue improvement in history,” Micron CEO Sanjay Melotra said in a statement. I will.

Micron specializes in DRAM and NAND memory chips. DRAM (Dynamic Random Access Memory) is a type of memory commonly used in PCs and servers, and NAND chips are flash memory chips used in small devices such as smartphones and USB drives. Like most semiconductors, memory chips were in great demand during the COVID-19 pandemic, and prices skyrocketed.

read: The shortage of semiconductors will continue, but the impact on chip companies will be different.

According to Micron, DRAM sales in the third quarter were 73% of revenue, or $ 5.42 billion, up from $ 3.59 billion in the year-ago quarter. NAND, on the other hand, accounted for 24% of sales, or $ 1.78 billion, up from $ 1.67 last year. a billion. According to FactSet, analysts expected DRAM sales to be $ 5.25 billion and NAND sales to $ 1.86 billion on average.

According to the company, DRAM demand is expected to grow by more than 20% annually and NAND growth is expected to be in the mid-30% range.

Micron expects adjusted fourth-quarter net income to be $ 2.20 to $ 2.40 per share, with revenues of $ 8 billion to $ 8.4 billion. Analysts predicted $ 2.18 per share with revenue of $ 7.88 billion.

In another release, Micron announced that it would sell its manufacturing plant in Lehi, Utah to Texas Instruments.

For $ 1.5 billion. The company paid $ 1.5 billion Intel Corp.of

49% interest in joint ventures in early 2019, and Earlier this year we announced plans to sell fabs.

Boise, Idaho-based Micron’s share price rose 2.5% in regular sessions to close at $ 84.89, and then remained almost flat in after-hours trading when the results were announced.

In the last three months, Micron’s share price has fallen 1.8%, but the PHLX Semiconductor Index

S & P 500 Index has grown by nearly 10%
+ 0.13%

Nasdaq Composite Index rose nearly 9%

It increased by 11%. During Micron’s third quarter, shares closed at $ 95.59 on April 12, just below the record high of $ 96.56 set on July 14, 2000.

Top estimate of Micron’s earnings and outlook, chip maker selling Utah factory to Texas Instruments

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