- Micron Technology stock jumped as much as 6.5% on Thursday after posting its FQ2 earnings.
- The company earned non-GAAP net income of $1.13 billion on $6.24 billion in revenue.
- MU beat analyst estimates and posted strong guidance for the fiscal third quarter.
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The Boise, Idaho-based memory and storage solutions provider posted non-GAAP net income of $1.13 billion which equates to earning per share of $0.98. The figure topped consensus estimates by $0.03.
Micron also saw revenues jump 30% from $4.8 billion for the same period last year to $6.24 billion in its fiscal second-quarter results, topping analysts’ consensus estimates of $6.21 billion.
Operating cash flow of $3.06 billion was strong in comparison to the $1.97 billion for the prior quarter and $2 billion for the same period last year as well.
Micron stock traded up 5% at $92.61 as of 11:33 a.m. ET on Thursday, having hit a session high at $94.38 earlier.
The company guided for revenue of between $6.9 billion and $7.3 billion in the upcoming fiscal third quarter. That’s compared to $5.44 billion from the same period a year ago. Gross margins are expected to be 41.5% with GAAP Diluted EPS hitting $1.52.
“Micron’s strong fiscal second-quarter performance reflects rapidly improving market conditions and continued solid execution,” said Micron Technology President and CEO Sanjay Mehrotra.
“Our technology leadership in both DRAM and NAND places Micron in an excellent position to capitalize on the secular demand driven by AI and 5G, and to deliver new levels of user experience and innovation across the data center and intelligent edge,” the CEO added.
Micron Technology has traded steadily between $90-$95 per share over the last month, but the stock is up roughly 93% in the past six months.
Ahead of earnings, Rosenblatt Securities analyst Hans Mosesmann reiterated his “buy” rating and price target of $150 on the firm.
Needham & Company also maintained its “buy” rating on shares of Micron with a price target of $120.
Rosenblatt’s price target represents a potential 61% surge from April 1 intraday highs, while Needham’s represents a potential 30% jump.
Overall analysts are bullish on shares of Micron. The company boasts 47 “buy” ratings, 10 “neutral” ratings, and just one “sell” ratings from analysts.
Micron traded up 3.75% as of 1:44 p.m. ET after paring gains on Thursday.