MU - Micron stock pops 15% as AI demand helps it post a surprise Q2 profit
2024-03-20 17:34:15 ET
Micron Technology Inc (NASDAQ: MU) says tight supply and AI driven demand helped it post a surprise profit for its fiscal second quarter. Shares of the chipmaker are up 15% in extended hours.
Micron stock up on strong guidance
The stock is being rewarded also because issued upbeat guidance for the future. It now forecasts $6.6 billion in revenue in Q3.
Analysts, in comparison, were at $6.02 billion. Sanjay Mehrotra – the chief executive of Micron Technology said in a press release today:
Our preeminent product portfolio positions us well to deliver a strong fiscal H2 of 2024. Micron is one of the biggest beneficiaries in semiconductor industry of multi-year opportunity enabled by AI.
The Nasdaq-listed firm reported gross margin as percent of revenue at 18.5% – up from 0.7% in Q1. Micron stock is up 35% versus its low last month.
Notable figures in Micron Q2 earnings release
- Earned $793 million that translates to 71 cents per share
- Had $2.3 billion loss or $2.12 per share last year
- Adjusted EPS printed at 42 cents a share as per the earnings report
- Revenue jumped 58% year-over-year to $5.82 billion
- Consensus was 25 cents loss on $5.35 billion in revenue
Micron reported $1.22 billion in operating cash flow in Q2 versus $343 million only in the same quarter last year. CEO Mehrotra also said on Wednesday:
Micron delivered fiscal Q2 results with revenue, gross margin, and EPS well above the high-end of our guidance range – a testament to our team’s excellent execution on pricing, products, and operations.
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