Micron Technology posted better-than- expected results for its May quarter, sending the stock higher.
The semiconductor company reported an adjusted loss of $1.43 a share for its fiscal third quarter, compared with the consensus call for a loss of $1.61 among analysts tracked by FactSet. Revenue came in at $3.75 billion—down 57% year-over-year, which was slightly above analysts’ expectations for $3.65 billion.
For the current quarter,
Micron
(ticker: MU) offered a range of revenue forecasts with a midpoint of $3.9 billion, which was roughly in line with the consensus of $3.88 billion.
The company is a leader in the semiconductor market for dynamic random-access memory, which is used in desktop computers and servers, and for flash memory, which is found in smartphones and solid-state hard drives.
“We believe that the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored,” Micron CEO Sanjay Mehrotra said in the press release.
Micron shares were up 2.3% to $68.61 in premarket trading the morning after the report.
Earlier this month, Micron warned a low-double-digit percentage of the company’s revenue was at risk of being impacted by the Cyberspace Administration of China’s ban on some of its products.
“The recent Cyberspace Administration of China (“CAC”) decision is a significant headwind that is impacting our outlook and slowing our recovery,” the company said Wednesday in its release.
On the conference call with investors, Micron management said it saw higher-than-expected demand for memory chips inside AI servers, but traditional data center server demand remains soft. The company also lowered its 2023 demand expectations for computers, smartphones and non-AI servers, compared to three months ago. Further, Micron has recently decided to reduce the production of memory chip wafers going into next year.
Micron stock was up about 34% this year as of Wednesday’s close.
Write to Tae Kim at [email protected]
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