Memory Chip maker Micron Technology, Inc. (NASDAQ:MU) reveals that its profit has climbed to 28% in its 2Q, once the market closed (more than that of last year’s). This has further aided the company by higher sales and lower income tax expenses.
Analysts’ estimates typically exclude special items.Not to mention, the quarterly earnings/share without items has also gone far beyond analysts’ expectation, with adjusted net income for the latest Q to beUS$941 million, or US$ 0.81/share.On average, 26 analysts by Thomson Reuters expect the company to earn US$ 0.73/share for the second Q.
Company reported net income for 2Q of US$934 million, or US$ 0.78/share, compared to US$731 million, or US$ 0.61/year-ago Q.
Excluding items,
According CEO Mark Durcan:
“Micron posted another solid quarter in our fiscal Q2 2015. We are pleased with our progress on technology and product migrations and remain confident in the performance of our business.”
On a rival platform, Micron competes with industry leaders Samsung and Hynix Semiconductor among others. Also, Micron has expanded into a new area of the memory market known as NOR, with its US$ 1.2 billion acquisition of Numonyx. The July 2013 acquisition of Elpida Memory helped in increasing Micron’s global market share for DRAM chips, which are most widely used in personal computers.
Micron also supplies NAND Flash memory chips to iPods, digital cameras and other portable devices.
Gross margin for the first quarter improved 33.7%, from a year earlier 34.2%. Net sales for the 2Q rose at 1.5%, with US$ 4.17 billion, from US$ 4.11 billion in the same Q in year 2014. Thirty analysts had a consensus revenue estimate of US$ 4.15 billion for the 2Q.
Micron forecast 3Q revenue of US$ 3.85 billion to US$ 4.05 billion, during a conference call with analysts, upon which they currently expect the company to post revenue of US$ 4.29 billion for its 3Q.
Micron shares were losing 1.58% in after-hours trading, after rising more than 5% previously. The shares, which have traded in a range of US$ 21.02 to US$ 36.59 over the past year, closed the day’s regular trading session unchanged at US$ 27.13.
