Micron's strong results were driven by double-digit sequential revenue growth in mobile, server and SSD applications, with expanded gross margins and improved profitability.
From the prior quarter, revenue rose 11%, reflecting increased demand for our mobile, server, and SSD products. The company's overall consolidated gross margin of 55.1% for the first quarter of 2018 was higher compared to 50.7% for the fourth quarter of 2017 and reflects margin expansion for both DRAM and Trade NAND products supported by ongoing strength in the pricing environment and a favorable product mix.
Revenues for the first quarter of 2018 were 11 percent higher compared to the fourth quarter of 2017, reflecting increased demand for our mobile, server, and SSD products. Our overall consolidated gross margin of 55.1 percent for the first quarter of 2018 was higher compared to 50.7% for the fourth .
Looking ahead, the company expects to see earnings of $2.51-2.65, which comes in well ahead of current Street expectations. Meanwhile, on the top line the company expects to see revenue come in at $6.80-7.20 billion, also coming in well ahead of expectations.
During its conference all after the close yesterday, the company said there was no significant impact to 2018 tax rate which would be in mid-single digit range; in 2019 would expect an impact from taxes.
The company also provided upbeat commentary on supply and demand.
The company said with respect to supply growth in calendar 2018, supply growth would reach 50% (2017 is 35-40%). Supply has also been tight and pent up demand (particularly in SSD) grew.
The company is seeing strong demand rates at the moment and applications for cloud and data centers are driving higher than average usage. Also mobile is driving demand. All are increasing because of the trend. Demand trend remains robust and there's more supply for flash, but company believes it can continue to grab share.
Following the open, shares of MU have pulled back about 2 points, but still remains over 4% higher.