Micron Posts First Revenue Rise in Seven Quarters as Pricing Improves

December 21, 2016, 11:07 PM UTC
Micron Technology Inc. Memory Chips As China-Backed Takeover Bid Seen Facing Tough U.S. Review
Micron Technology Inc. Double-Data-Rate Synchronous Random-Access Memory (SDRAM) chips are arranged for a photograph in Tokyo, Japan, on Wednesday, July 15, 2015. The investment arm of one of China's top universities is planning to offer $23 billion for chipmaker Micron Technology, a person familiar with the matter said, a deal that would be the largest takeover of a foreign firm by a Chinese company. Photographer: Tomohiro Ohsumi/Bloomberg via Getty Images
Photograph by Tomohiro Ohsumi — Bloomberg via Getty Images

Memory-chip maker Micron Technology forecast current-quarter revenue and profit above estimates and posted its first rise in quarterly revenue in nearly two years, as a stabilizing PC market boosted chip demand and pricing.

The company’s shares were up 7.4% in after-market trading on Wednesday.

Micron forecast adjusted profit of 58-68 cents per share for the current quarter, much higher than the average analysts’ estimate of 39 cents, according to Thomson Reuters I/B/E/S.

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Micron (MU) also said it expected revenue of $4.35 billion-$4.70 billion, above estimate of $3.91 billion.

Prices of dynamic random access memory (DRAM) chips used in personal computers have been recovering as the PC market improves amid tighter supplies.

Average selling prices of DRAM chips rose 5% in the quarter, the company said.

Micron, which gets about 60% of its revenue from DRAM chips, said last month it expected slowing industry supply growth for the next few quarters, while overall demand stayed healthy.

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The company’s net income attributable to shareholders fell to $180 million, or 16 cents per share, in the first quarter ended Dec. 1, from $206 million, or 19 cents per share, a year earlier.

Revenue rose 18.5% to $3.97 billion.

On an adjusted basis, Micron earned 32 cents per share, beating estimates of 28 cents per share.

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