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Micron shares rise after earnings beat

  • Micron reported better-than-expected earnings and revenue.
  • The chipmaker's first-quarter forecast also beat Wall Street expectations.

Micron Technology reported fourth-quarter earnings and revenue that beat analysts' expectations on Tuesday.

Here's how the company did compared with what Wall Street expected:

  • EPS: $2.02 vs. $1.83 expected, according to Thomson Reuters
  • Revenue: $6.14 billion vs. $5.96 billion expected, according to Thomson Reuters

In the year-ago quarter, Micron reported an adjusted loss per share of 1 cent on $3.22 billion in revenue.

Micron shares gained as much as 4 percent in after-hours trade.

CEO Sanjay Mehrotra said Micron expects "healthy industry fundamentals to continue into 2018."

For the fiscal first quarter, Micron said it expects earnings between $2.09 and $2.23 a share on revenue between $6.10 billion and $6.50 billion.

Those ranges were well above Street expectations. Analysts had projected first-quarter earnings of about $1.85 per share on $6.06 billion in revenue, according to Thomson Reuters consensus estimates.

Wall Street has said Micron could benefit from growing demand for memory products as new technology markets open up. Areas like artificial intelligence and networking may drive a growing share of demand for products from chipmakers like Micron.

Analysts have been optimistic about the stock. The average price target on Micron shares was near $44.88 before Tuesday's close, implying a roughly 29 percent upside.

Shares of Micron have rocketed nearly 60 percent so far this year, outperforming the 23 percent gain in the broader S&P 500 Information Technology sector.

The stock hit a 52-week intraday high of $36.60 last week. The stock closed at $34.18 on Tuesday.

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