Micron: 'early signs' of demand improvement; shares jump
(CercleFinance.com) - Micron Technology on Tuesday beat quarterly profit and revenue expectations, despite a "challenging environment," and said it was seeing "early signs of demand improvement.
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The US maker of memory chips for computers said net profit fell to 840 million dollars in the quarter ended 30 May, compared with over 3.8 billion dollars a year earlier.
The Boise, Idaho-based company said its gross margin dropped to 38.2% over the quarter, from 49.1% in the previous three months. Meanwhile, revenue reached 4.8 billion dollars, surpassing the consensus of 4.7 billion dollars.
"Commentary around bit demand pick-up in the second half of 2019, especially around data center, gaming, and PCs is refreshing and supports the bull call," commented analysts at Credit Suisse.
"Micron is executing well to what they can control - unfortunately, the impact of the US/China trade saga is outside of their control," they said.
Micron shares rocketed 11% higher in morning trading on Wednesday after these quarterly results.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
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The US maker of memory chips for computers said net profit fell to 840 million dollars in the quarter ended 30 May, compared with over 3.8 billion dollars a year earlier.
The Boise, Idaho-based company said its gross margin dropped to 38.2% over the quarter, from 49.1% in the previous three months. Meanwhile, revenue reached 4.8 billion dollars, surpassing the consensus of 4.7 billion dollars.
"Commentary around bit demand pick-up in the second half of 2019, especially around data center, gaming, and PCs is refreshing and supports the bull call," commented analysts at Credit Suisse.
"Micron is executing well to what they can control - unfortunately, the impact of the US/China trade saga is outside of their control," they said.
Micron shares rocketed 11% higher in morning trading on Wednesday after these quarterly results.
Copyright (c) 2019 CercleFinance.com. All rights reserved.