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(Reuters) -Micron Technology Inc on Monday forecast second-quarter sales and profits above Wall Street estimates as demand for its memory chips has surged on the shift to remote working during the pandemic as well as 5G smartphone upgrades and electric vehicles.
The company makes both the NAND memory chips that serve the data storage market and the DRAM memory chips that are widely used in data centers, personal computers and other devices. Micron (NASDAQ:MU) shares rose 5.7% to $87.70 in extended trading after the results.
Strong demand and an industry-wide shortage of the chips have also allowed Micron, one of the world’s biggest memory chip suppliers, to charge higher prices for its products.
The company expects revenue for the current fiscal second quarter to be $7.5 billion, plus or minus $200 million, compared with analysts’ average estimate of $7.27 billion, according to Refinitiv data. The company forecast adjusted earnings per share of $1.95, plus or minus 10 cents, beating analyst estimates of $1.86, according to Refinitiv data.
In the first quarter, Micron reported sales of $7.69 billion, above analyst expectations of $7.67 billion, according to Refinitiv data. Micron earned $2.16 per share on an adjusted basis, beating expectations of $2.11 per share.
