Micron (MU 36.70, +2.52) has jumped 7.4% after beating quarterly expectations and issuing upbeat guidance.
The stock is now up nearly 70.0% for the year, trading at a level not seen since early 2002. The semiconductor company reported above-consensus earnings of $2.02 per share on a 90.8% year-over-year spike in revenue to $6.14 billion, which was also ahead of expectations.
Consolidated gross margin increased to 51.3% from 48.0% in the previous quarter and 18.6% one year ago.
DRAM sales volume grew 5.0% while DRAM average selling price increased 8.0%. NAND sales volume increased 3.0% and average selling price rose 5.0%.
Looking ahead, Micron expects that first quarter earnings will be between $2.09 and $2.23 per share on revenue between $6.10 billion and $6.50 billion. Both guidance ranges are ahead of current market expectations.
The company expects that revenue for fiscal year 2018 will be between $6.10 billion and $6.50 billion. Gross margin is expected between 50.0% and 54.0% with operating expenses expected between $575 million and $625 million. Operating income for the fiscal year is expected between $2.65 billion and $2.85 billion.
Micron noted that its capital management plan indicates the potential to improve its annualized earnings by $0.18 to $0.23 per share.