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.