Micron Earnings, Forecasts Beat Estimates on Improving Pricesby
Micron Technology Inc., the largest U.S. maker of memory chips, predicted profit and sales that may beat analysts’ estimates, helped by improving prices for semiconductors used in computers as demand for those devices picks up.
- Profit, excluding certain items, will be 13 cents to 21 cents in the current period, Micron said in a statement Tuesday posted on its website. That compares with an average analyst estimate of a profit of 12 cents, according to data compiled by Bloomberg.
- Revenue in the three months ending in November will be $3.55 billion to $3.85 billion, Micron said. Analysts projected $3.48 billion.
The Big Picture
Micron and other memory chipmakers may be benefiting from a rebound in orders for personal computer parts after PC makers ran down their inventories to too low a level for the holiday shopping season when demand for PCs peaks. Micron’s revenue had declined year over year for the last six quarters as industry production of chips has outpaced stagnant demand for computer and smartphone components. The oversupply has squeezed prices of the memory semiconductors that are traded as commodities. The company is trying to upgrade its manufacturing to make it as efficient as larger rivals Samsung Electronics Co. and SK Hynix Semiconductor and improve profitability.
- Micron reported a net loss of $170 million, or 16 cents a share, in the three months ended in August, compared with a profit of $471 million, or 42 cents a share, in the same period a year earlier.
- Analysts estimated a loss of 14 cents on revenue of $3.19 billion.