Micron Technology Inc, the biggest US maker of computer memory, on Friday rose the most in five weeks after reporting fiscal fourth-quarter sales and profit that exceeded some analysts’ estimates.
Micron shares climbed 7.7 percent to US$15.91 at the close in New York, the biggest single-day advance since Aug. 27. The stock had lost 58 percent of its value this year through Thursday.
Net income in the period ended on Sept. 3 fell from US$1.15 billion a year earlier, or US$0.96 per share, to US$471 million, or US$0.42 a share, the Boise, Idaho-based company said in a statement on Thursday, adding that revenue declined 15 percent to US$3.6 billion.
Analysts had projected sales of US$3.56 billion. Profit, excluding certain items, was US$US0.37 a share, topping the US$0.33 average analysts’ estimate compiled by Bloomberg.
Micron makes chips that provide short-term memory in computers and servers, as well as other semiconductors that store data in mobile devices. The company and its competitors — Samsung Electronics Co and SK Hynix Inc — are producing more than enough chips to meet lackluster demand, causing prices to fall.
Micron projected sluggish growth in the current quarter as demand for PCs continues to decline. Investors might use the company’s outlook as a bellwether for reports by larger US and global technology companies later this month.
While Micron projected little growth, the company’s sales forecast for the current quarter topped some of the most pessimistic analysts’ projections.
“We expect the demand environment to stabilize and improve as we move through calendar 2016,” Micron said in its presentation.
Micron is the largest remaining US-based maker of computer memory, also known as dynamic random access memory, or DRAM, chips. The company is expanding its offerings to include memory for smartphones and servers and another type of chips used as storage in mobile devices and computers.
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