Micron Technology Beats Q1 Estimates on Massive DRAM Growth, Stable Pricing; Shares Soar
Shares of Micron Technology jumped more than 6% in early after-hours trading on Tuesday, powered by a just-released first-quarter report. Coupled with a 5.1% gain during regular market hours, Micron shares surged more than 11% today.
Revenue surged 120% higher year over year, stopping at $4.0 billion. Non-GAAP earnings jumped 165% higher to $0.77 per share. Analysts were looking for roughly $0.43 of adjusted earnings per share on $3.7 billion in sales, and Micron breezed past these estimates by a wide margin.
This was the first full quarter since Micron acquired bankrupt rival Elpida. The acquisition explains Micron's surging DRAM sales while NAND flash products rose 8% from the previous quarter on strong demand. Micron's Q1 guidance from October pointed to 40% higher DRAM production with Elpida under its belt, but DRAM bit growth actually came in 69% higher.
The surprisingly swift DRAM production did not result in oversupply and plunging unit prices. DRAM prices were in line with the previous quarter's; NAND prices declined about 6%. Micron expects these trends to continue into the second quarter.
Micron supplemented the earnings release with a slide deck analyzing the results. You can access the slides via Micron's investor relations site.
The article Micron Technology Beats Q1 Estimates on Massive DRAM Growth, Stable Pricing; Shares Soar originally appeared on Fool.com.Fool contributor Anders Bylund owns shares of Micron Technology. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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