Micron beats Wall Street estimates in the fiscal second quarter

Micron Technology Inc. (NASDAQ: MU) published its earnings report for the fiscal second quarter on Wednesday that beat Wall Street estimates.

Micron shares were reported more than 2% up in after-hours trading on Wednesday. Including the price action, the stock is now exchanging hands at £65.41 per share. In comparison, the U.S. chipmaker had started the year 2021 at a per-share price of a lower £53.72. The price action should come in handy if you are interested in investing in the stock market.

Micron’s Q2 financial results versus analysts’ estimates

Micron said that its net income in the second quarter printed at £437.49 million that translates to 38.45 pence per share. In the same quarter last year, its net income was capped at a lower £293.84 million, or 26.12 pence per share.

On an adjusted basis, the chipmaker earned 71.10 pence per share in Q2 versus the year-ago figure of 32.65 pence per share. Micron generated £4.53 billion of revenue in the recent quarter – an increase from £3.48 billion last year.

According to FactSet, experts had forecast the company to record $4.49 billion of revenue in the second quarter. Their estimate for adjusted per-share earnings stood at a lower 68.92 pence. Micron’s quarterly update comes a day after the American clothing company PVH Corp also reported its financial results for the fiscal fourth quarter.

As per Micron, DRAM sales accounted for 71% of its total quarterly revenue, while NAND made up 26% of the revenue. Revenue from both segments was better than expected in Q2. In the prior quarter (Q1), DRAM sales had made up 70% of Micron’s total revenue.

Other prominent figures in Micron’s earnings report

Other notable figures in the Boise-headquartered company’s earnings report on Wednesday include a 34% annualised growth in compute and network sales, and a 44% increase in mobile sales.

For the fiscal third quarter, Micron now forecasts up to £5.30 billion of revenue. It expects its adjusted EPS to fall in the range of £1.12 to £1.23. In comparison, analysts are calling for £4.96 billion of revenue and 96 pence per share of adjusted EPS.

Micron performed largely upbeat in the stock market last year with an annual gain of a little under 40%. At the time of writing, the Nasdaq-listed company is valued at £71.59 billion and has a price to earnings ratio of 33.29.