Micron Technology Inc. (MU) raised its earnings and revenue outlook for the third quarter, sending its shares up more than 3 percent in the after-hours trading session on Monday. Micron stock price has nearly doubled over the past year.
The Boise, Idaho-based memory chip maker is now looking for earnings in a range of $3.12 per share to $3.16 per share for the third quarter, up from its previous forecast in between $2.76 per share and $2.90 per share.
Revenue for the third-quarter is expected to come between $7.7 billion and $7.8 billion, as compared to its earlier projection in a range of $7.2 billion to $7.6 billion. The outlook is also above consensus forecast. Analysts on average were looking for a profit of $2.86 per share on $7.49 billion in revenue.
The company also announced on Monday that its Board of Directors has given permission for a $10 billion share buyback program that accounts for nearly 16 percent of Micron’s market value, marking the biggest ever share repurchase program in its history. The latest move is a part of the company’s plan to return about 50 percent of free cash flow to shareholders starting next year.
Micron made the announcement at its Analyst and Investor Event held in New York City. Speaking to investors during the event, CEO Sanjay Mehrotra said the data-driven economy will reform almost every industry, and boost demand for memory and storage. Mehrotra also said that the company is well positioned to take advantage of these opportunities and deliver solid business performance. He added that the stock repurchase program underlines Micron’s ongoing commitment to increasing shareholder value.
Separately, Micron inked a deal with chipmaker giant Intel Corp (INTC) to manufacture and ship the next generation of semiconductors used in digital cameras and flash drives.