Micron shares rise a tad after chipmaker beats Street's fiscal 2Q forecasts

Shares of Micron Technology (NASDAQ:MU) edged higher in after-hours trade Wednesday after the chip maker overcame a “challenging market” to beat Wall Street’s lowered forecasts for revenue and profit in its fiscal second quarter.

Based in Boise, Idaho, Micron is the second-largest supplier of memory chips globally, offering chips that include DRAM, NAND flash and NOR flash.

Micron’s memory chips are used to store information, in comparison with microprocessor chips made by companies like Intel, which provide computing power.

READ: Baird analyst reiterates Underperform rating on US chipmaker Micron Technology

In the three months until February 28, the chip maker posted net income on an adjusted basis of $1.97 billion, or $1.71 per share. These results represent a drop from its profit of $3.5 billion, or $2.82 per share in the year-ago quarter, but come in ahead of the Street’s consensus, which shifted lower over the quarter, of $1.67 per share.

The chip maker’s revenue, meanwhile, amounted to $5.84 billion, which was down from $7.35 billion in the corresponding period a year ago, but just slightly ahead of analysts’ projection of $5.82 billion.

News of Micron’s quarterly performance comes as chipmakers face a problem of oversupply due to diminishing demand for smart phones.

“Micron continues to execute well across a range of product, operational and financial initiatives against the backdrop of a challenging market environment,” said Micron Technology CEO  Sanjay Mehrotra in a statement.

“These initiatives and our focus on high-value solutions, cost competitiveness and innovation will enable us to emerge even stronger as the market environment improves,” he added.

After wavering initially after the bell, Micron shares nudged up by 0.5% to hit $40.33 in extended trade.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors