Micron Technology Inc. (NASDAQ: MU) reported its third quarter financial results during Wednesday’s afterhours and topped estimates in both revenue and earnings. The company also reported a stronger forecast saying that demand for memory chips will grow.
Micron shares were trading 1.65 percent shortly after the opening bell on Thursday.
For the third quarter, Micron reported revenue of $7.8 billion, increasing 40 percent year over year, and earnings of $3.15 per share. FactSet analysts forecasted earnings of $3.13 per share on revenue of $7.76 billion.
Revenue was driven the increased demand across Micron’s products and end markets, the company said in a statement.
"Micron delivered record results in financial performance for the third fiscal quarter, supported by strong execution and ongoing secular demand trends," said Micron President and CEO Sanjay Mehrotra.
Micron’s revenue in its mobile segment increased by 12 percent sequentially. Revenue from mobile NAND almost doubled quarter over quarter, driven by various segments from eMMC and eMCP products to multiple smartphone OEMs.
Micron’s data center also drove momentum from the company’s DRAM and NAND solutions, totaling revenue growth of 87 percent year over year.
Demand for memory and storage solutions continued throughout the third quarter, being a key factor to the stronger revenue growth. DRAM and NAND revenue from cloud customers increased by 33 percent and 24 percent, respectively.
“We achieved record revenue across all market segments of our embedded business, enabled by shifts to higher-value products and continuing healthy demand. Growth was particularly robust in consumer and industrial markets, driven by trends in home and industrial automation, drones, and IoT” said Mehrotra in the earnings call.
Mehrotra continued to say in the earnings call that Micron is accelerating advanced technology development and beginning to deploy into production to meet the company’s supply growth as well as reduction targets.
Micron also is planning to broaden its portfolio of various solutions to bolster its profitability and strengthen customer relations.