Micron Technology’s Q4 financial results exceed expectations
Micron Technology Inc, the memory chipmaker, has reported impressive fourth quarter results and revenue outlook that exceeds all expectations.
Micron Technology revenue increased by 49 percent to $4.23 billion in Q4, which ended in August, and net profit of $1.15 billion (or 96 cents per share) compared to a net profit of $1.71 billion the year before. The company has also said that it expects revenue between 4.45 billion and $4.70 billion in in Q1 2015.
At the end of trading on Thursday, shares were at $31.79, an increase of 87 percent in the last 12 months.
Shares of the company went up by 4 percent in extended trade following the release of its new revenue forecast.
There has been strong demand for DRAM computer chips from personal computer manufacturers, with Micron managing to lock in good deals with some of its largest customers.
There is also strong demand for NAND chips, which are used in smartphones and some laptops.
According to Thomson Reuters I/B/E/S, the results are ahead of what many analysts had predicted – of around $4.16 billion for the fourth quarter.
Since the beginning of the year Micron stock has increased by 44 percent, while the Standard & Poor’s 500 index has increased nearly 7 percent. This has been fueled by stable and strong demand for memory chips. Last year’s acquisition of Japanese DRAM maker Elpida Memory has also been praised to have been a success.