Micron Technology, Inc. (NASDAQ: MU) reported its first quarter financial results after the closing bell on Wednesday. The Company reported better-than-expecting earnings, which sent shares higher by 2.4% on Thursday morning.
For the first quarter, Micron reported earnings of USD 0.48 per share on revenue of USD 5.14 Billion. FactSet analysts polled earnings of USD 0.47 per share on revenue of USD 5.2 Billion.
Despite surpassing analysts’ earnings estimates and narrowly missing revenue expectations, Micron witnessed its income and revenue sharply decline year-over-year. At the end of the quarter, the Company reported total operating income of USD 518 Million compared to USD 3.75 Billion the same period a year ago. Meanwhile, revenue fell from USD 7.91 Billion in the first quarter of fiscal 2019.
Micron specializes in DRAM and NAND memory chips. However, within the decline in the chip sector, Micron experienced market weakness, which led to the overall decline.
However, Micron Technology President and Chief Executive Officer Sanjay Mehrotra said he expects “calendar 2020 industry-bit supply to be lower than industry-bit demand as a result of industry capex reductions, and consequently we expect the industry environment to improve through calendar 2020.”
For the second quarter, Micro is expecting earnings of USD 0.35 per share, plus or minus USD 0.06. The Company is also forecasting revenues between USD 4.5 Billion to USD 4.8 Billion. Analysts are expecting earnings of USD 0.39 per share on revenue of USD 4.75 Billion.
“Our base-case assumption, on which all our projections are based, assumes that there are no perturbations to the demand environment due to macroeconomic conditions or trade-related developments,” Mehrotra said on the earnings conference call. “In DRAM, there has been a strong recovery in the second half of calendar 2019, and our view of calendar 2019 industry-bit demand growth has increased to approximately 20%.”
Following Micron’s earnings beat, shares are now up 71.2% this year.