Micron technology (MU) – Get report, the powerhouse of semiconductors, reported that fiscal third quarter net earnings per share more than doubled to 36% more than revenue.
The quarterly numbers, and the outlook for the fourth quarter, were stronger than Wall Street analysts’ estimates.
The company also said it would sell a Lehi, Utah, manufacturing plant to Texas Instruments. (TXN) – Get report for $ 1.5 billion.
And earlier in the day, Micron updated to outperform the market at BMO Capital Markets. Analyst Ambrish Srivastava raised his price target at the Boise, Idaho company to $ 110 from $ 90.
For the quarter ending June 3, Micron earned $ 1.74 billion, or $ 1.52 per share, compared to $ 803 million, or 71 cents, in the prior-year quarter. The latest adjusted earnings were $ 1.88 per share.
Revenue reached $ 7.42 billion from $ 5.44 billion.
An analyst survey by FactSet produced consensus estimates of GAAP earnings of $ 1.55 per share, or a $ 1.72 adjustment, on revenue of $ 7.23 billion.
Third quarter gross margin expanded to 42.1% from 32.4%.
For the fourth quarter, Micron expects GAAP net income of $ 2.23 per share, plus or minus a dime. You see an adjusted profit of $ 2.30, plus or minus a dime. Revenues should be $ 8.2 billion, plus or minus $ 200 million.
The FactSet survey for the fiscal fourth quarter called for earnings of $ 2.05, or an adjustment of $ 2.18, on revenue of $ 7.88 billion.
Srivastava said in its report that the investment firm saw “a tight supply environment in 2022, driven by a combination of supply dynamics and capex discipline. [as well as] demand drivers “.
He specifically said that “this is not a call about upcoming quarterly earnings …
“This is a call for positive support for fundamentals that we see will lead to a continued imbalance between supply and demand in 2022, with positive implications for DRAM prices compared to our previous thinking.”
The analyst said Micron shares have “underperformed significantly” against SOX so far this year, up 10% compared to 20% for the index. The PHLX semiconductor index on Tuesday was down 0.11% to 3,345.31.
From the sale of the fabulous Micron he said he would receive a value of $ 1.5 billion, consisting of $ 900 million in IT cash and $ 600 million from tools and other assets.
Micron said in March that it intended to sell the Lehi facility and end production of the 3D XPoint technology.
Lastly, Micron Technology shares fell 1.8% to $ 83.48. They closed Tuesday up 2.5% at $ 84.98.