By Maria Armental
Micron Technology Inc., one of the world's largest memory chip makers, on Monday reported better-than-expected third-quarter financial results, showing the company's business is weathering the coronavirus pandemic. Here's what you need to know.
PROFIT: Net income fell to $803 million, or 71 cents a share, from $840 million, or 74 cents a share, a year earlier. On an adjusted basis, profit fell to 82 cents a share from $1.05 a share a year earlier. The company had projected a profit of 61 cents to 66 cents a share, or 75 cents to 80 cents a share on an adjusted basis, while analysts surveyed by FactSet recently projected 64 cents a share, or 75 cents a share as adjusted.
REVENUE: Revenue rose to $5.44 billion from $4.79 billion a year earlier. Micron projected $5.2 billion to $5.4 billion, while analysts recently projected $5.27 billion.
OUTLOOK: This quarter, Micron expects profit around 88 cents a share, or $1.05 a share on an adjusted basis, plus or minus 10 cents. It forecast $5.75 billion to $6.25 billion in revenue. Analysts projected 71 cents a share, or 79 cents a share as adjusted, on $5.46 billion in revenue.
PANDEMIC: Company officials have cited short-term challenges from the pandemic, including lower smartphone demand and in the automobile market, but said long-term trends remain strong. On Monday, Chief Executive Sanjay Mehrotra pointed to the company's financial performance despite challenges and said: "We are ramping the industry's most advanced DRAM technology into production and have delivered more than 75% of our NAND volume as high-value solutions, supported by record SSD revenue in the quarter. Our portfolio momentum positions us exceedingly well to leverage the long-term growth across our end markets."
Write to Maria Armental at firstname.lastname@example.org
(END) Dow Jones Newswires
June 29, 2020 16:32 ET (20:32 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.