After hours Micron’s shares were up 13% to $1,180, after the company posted quarterly earnings that beat Wall Street’s expectations, and raised its guidance because of AI demand.
Micron reported adjusted earnings of $25.11 per share and revenue of $41.46 billion for the third quarter. This slaughter estimates of $21.05 EPS and $36.28 billion in revenue. Its margins jumped to 84.5% from 74.4%, as the chipmaker raised prices due to an industrywide supply shortage. The company also announced its $0.15 per share dividend.
“Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era,” Micron CEO Sanjay Mehrotra said, adding that the company is “investing at record levels in technology, products and supply to address our customers’ rapidly growing demand.”
Micron’s fourth quarter guidance is between $49 billion – $51 billion in revenue with an EPS between $30 and $32, which is higher than analysts expectations.
The company’s earnings report after the bell excited the market as over 16 million shares traded in after hours, which is speculated to be a mix of hopeful investors and shorts who need to cover.
