Shares of Micron Technology (NASDAQ:MU) jumped as much as 6% today to record highs after the company reported fiscal fourth-quarter earnings. The results topped expectations and Micron issued a rosy forecast.
Revenue in the fiscal first quarter came in at $5.77 billion, ahead of the $5.66 billion in sales Wall Street was expecting. That resulted in adjusted net income of $897 million, or $0.78 per share. The consensus estimate had called for just $0.69 per share in adjusted profits. The semiconductor company is enjoying strong demand for its memory products across many markets. Smartphones remain one of Micron's most important end markets, and many flagship 5G smartphones -- that require more DRAM memory -- launched during the quarter.
"We are excited about the strengthening DRAM industry fundamentals," CEO Sanjay Mehrotra said in a statement. "For the first time in our history, Micron is simultaneously leading on DRAM and NAND technologies, and we are in an excellent position to benefit from accelerating digital transformation of the global economy fueled by AI, 5G, cloud, and the intelligent edge."
Guidance for the fiscal second quarter was also strong, with revenue expected in the range of $5.6 billion to $6 billion, comfortably above the $5.52 billion in sales that analysts are modeling for. Gross margin next quarter should be 24% to 26%, which should all result in adjusted earnings per share of $0.68 to $0.82. Wall Street is looking for just $0.64 per share in adjusted profits.