Micron Technology, the vendor of DRAM and NAND memory chips, Tuesday afternoon reported fiscal fourth quarter revenue and profit that topped analysts' expectations, but a forecast for this quarter that was merely in line as far as revenue, and below consensus on earnings.
CEO Sanay Mehrotra cited "strong" sales of DRAM chips for cloud computing, PCs, and gaming consoles, as well as "an extraordinary increase in QLC NAND shipments," the most advanced type of NAND flash that Micron makes.
Mehrotra said the rest of 2020 should see "improving market conditions," thanks to 5G, cloud computing, and the automotive market.
Gross profit margin in the quarter rose to 34.1% from 32.4% in the prior quarter and 28.6% a year earlier.
Revenue in the three months ended in August rose to $6.06 billion, yielding EPS of $1.08. Analysts had been modeling $5.89 billion and 98 cents per share.
For the current quarter, the company sees revenue in a range of $5 billion to $5.4 billion, compared to the average estimate of analysts of $5.27 billion. However, EPS is seen in a range of 40 cents to 54 cents, well below consensus of 69 cents.
Gross profit margin this quarter is expected to drop to a range of 26.5% to 28.5%, on a non-GAAP basis.
Micron will host a conference call with analysts this evening at 4:30pm ET. You can catch it on the Micron investor relations Web site.
Shares of Micron initially rose fractionally in late trading but quickly gave up gains and are down 1% at $49.84.