Micron Technology Inc. (NASDAQ: MU) on Thursday announced quarterly sales and earnings that beat analysts’ estimates. But the company gave a weak forecast for third-quarter sales, sending its shares down more than 3 percent.
Memory-chip company said net sales rose 58.2 percent to $7.35 billion in the quarter ended March 1. Analysts polled by Thomson Reuters had projected sales of $7.28 billion.
Net income was $3.31 billion, or $2.67 a share, in the second quarter, compared with $894 million, or 77 cents, a year earlier. Excluding certain items, the company earned $2.82 per share, beating analysts’ projection of $2.74 per share.
"Micron executed exceptionally well in the second quarter, delivering record results and strong free cash flow driven by broad-based demand for our memory and storage solutions. Our performance was accentuated by an ongoing shift to high-value solutions as we grew sales to our cloud, mobile and automotive customers and set new records for SSDs and graphics memory," said Micron President and CEO Sanjay Mehrotra. "Secular technology trends are driving robust demand for memory and storage, and Micron is well-positioned to address these growing opportunities."
The company now forecast third-quarter revenue between $7.20 billion and $7.6 billion. While analysts estimated $7.29 billion.
Micron shares fell 3.22 percent to $57.18 in the early trading on Friday. Including today’s decline, the stock was still up nearly 40 percent this year.