Tech

Chipmaker Micron beats revenue, profit estimates

The logo of U.S. memory chip maker MicronTechnology is pictured at their booth at an industrial fair in Frankfurt, Germany, July 14, 2015. REUTERS/Kai Pfaffenbach

(Reuters) – U.S. chipmaker Micron Technology Inc beat analysts’ estimates for quarterly revenue and profit on Wednesday, getting a lift from demand for its memory chips used in data centers.

The company’s shares, which have gained about 27 percent this year, were marginally higher in choppy after-market trading.

The results come against the backdrop of a glut in the global semiconductor industry that has been triggered by waning demand for smartphones.

Chipmakers are also reeling from a prolonged trade war between the United States and China, with Micron warning in September that U.S. tariffs on Chinese goods will weigh on its financial results for as much as a year.

Micron has been looking to weather the slowdown by investing more on its next generation chips, as well as reducing output.

Net income attributable to the company fell to $1.62 billion, or $1.42 per share, in the second quarter ended Feb. 28, from $3.31 billion, or $2.67 per share, a year earlier.

Revenue fell to $5.84 billion from $7.35 billion.

Excluding items, the company earned $1.71 per share.

Analysts on average had expected Micron to report a profit of $1.67 per share and revenue of $5.82 billion, according to IBES data from Refinitiv.

Reporting by Sayanti Chakraborty in Bengaluru; Editing by Sriraj Kalluvila


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