Chipmaker Micron beats revenue, profit estimates

March 20, 2019

(Reuters) – U.S. chipmaker Micron Technology Inc beat analysts’ estimates for quarterly revenue and profit on Wednesday, getting a lift from demand for its memory chips used in data centers.

The company’s shares, which have gained about 27 percent this year, were marginally higher in choppy after-market trading.

The results come against the backdrop of a glut in the global semiconductor industry that has been triggered by waning demand for smartphones.

Chipmakers are also reeling from a prolonged trade war between the United States and China, with Micron warning in September that U.S. tariffs on Chinese goods will weigh on its financial results for as much as a year.

Micron has been looking to weather the slowdown by investing more on its next generation chips, as well as reducing output.

Net income attributable to the company fell to $1.62 billion, or $1.42 per share, in the second quarter ended Feb. 28, from $3.31 billion, or $2.67 per share, a year earlier.

Revenue fell to $5.84 billion from $7.35 billion.

Excluding items, the company earned $1.71 per share.

Analysts on average had expected Micron to report a profit of $1.67 per share and revenue of $5.82 billion, according to IBES data from Refinitiv.

(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Sriraj Kalluvila)

Comments (No)

Leave a Reply