Third-quarter sales of memory chips and memory-based consumer products added up to $2.3 billion, more than double the $1.1 billion revenue seen a year ago and a 17% climb quarter-over-quarter. To find a time when Micron last cleared $2 billion in sales, we have to look all the way back to a single quarter in the dot-com boom days.
Likewise, the bottom-line result glitters in the sun: Earnings of $939 million, or $0.92 per diluted share, nearly tripled last quarter's $0.39 of earnings per share and blew the year-ago period's $0.37 net loss per share to Kingdom Come.
Now, $465 million of the GAAP earnings came from a one-time accounting item. After taking memory maker Numonyx off the hands of Intel
It's a combination of high chip prices and good customer demand that's driving the train here. Apple
But is it too late to jump aboard the Micron bandwagon? The stock price has more than quadrupled since hitting multi-year lows around the end of 2008, after all. Then again, that view compares Micron's current glory days to the deepest, darkest night of a very long, industrywide price war. Micron still has a long way to climb before getting back to its 2006 prices -- and that's quite beside the fact that business is much better now than it was back then.
I'm popping over to CAPS to rate Micron "outperform" for the next six months or so, at which point I'll survey the scene again. Judging by the stock's precipitous decline today, it looks like I'm standing alone in that decision. If you're joining me in the contrarian camp, feel free to tag along -- it's fun, free, and only takes a couple of clicks.