Shares in Micron Technology, Inc. (MU) surged by more than 17 percent in Thursday's pre-market trading, reaching $113.30. This increase in value was triggered by the company’s strong results for the second quarter, which surpassed Wall Street expectations. Micron also offered a third-quarter forecast that was more optimistic than the general consensus.
For the second quarter, the company reported a net income of $793 million, or $0.71 per share. This was a marked improvement compared to a loss of $2.312 billion or $2.21 per share in the same quarter of the previous year.
Upon excluding certain one-time items, the earnings stood at $476 million, or $0.42 per share. On average, a group of 24 analysts surveyed by Thomson-Reuters had predicted that the company would report a loss of $0.25 per share.
As for the revenue figures, they surged to $5.82 billion from $3.69 billion in the previous year, beating the consensus estimate of $5.34 billion.
In terms of future expectations, Micron anticipates a third-quarter revenue of $6.60 billion, give or take $200 million. The company also expects its adjusted earnings to come in around $0.45 per share, plus or minus $0.07.
Analysts had previously projected that Micron would report earnings of $0.20 per share on a revenue of $6 billion for the quarter.
Looking into the future, Sanjay Mehrotra, the President and CEO of Micron Technology, remarked, "our superior product range positions us favorably for a robust fiscal second half of 2024. We believe that Micron is primed to be one of the largest beneficiaries of the multi-year opportunities brought about by AI within the semiconductor industry."
Micron’s shares closed at $96.25, reflecting a 2.39 percent increase on Wednesday. Over the last year, the stock's trading range has fluctuated between $56.01 and $101.85.
