Micron forecasts revenue above estimates as remote work boosts demand

FILE PHOTO: The logo of U.S. memory chip maker MicronTechnology is pictured at their booth at an industrial fair in Frankfurt, Germany, July 14, 2015. REUTERS/Kai Pfaffenbach/File Photo GLOBAL BUSINESS WEEK AHEAD

(Reuters) – Micron Technology Inc on Monday forecast current-quarter revenue above Wall Street estimates as home-bound employees and students spur demand for its chips that power notebooks and data centers, sending its shares up 6% in after-market trading.

As lockdowns ease globally, chipmakers stand to benefit from the pent-up demand for smartphones, particularly 5G phones, in addition to the rapid shift to remote work and online learning, boosting demand for DRAM chips.

Revenue for Micron, one of the biggest DRAM chip suppliers, rose 13.6% to $5.44 billion in the third quarter, beating estimates of $5.31 billion, according to IBES data from Refinitiv.

Excluding items, the company earned 82 cents per share, above estimates of 77 cents per share.

The chipmaker expects revenue in the fourth quarter ended May 28 to be between $5.75 billion and $6.25 billion, the mid-point of which was above analysts’ estimates of $5.48 billion.

Net income attributable to the company fell to $803 million, or 71 cents per share, in the reported quarter, from $840 million, or 74 cents per share, a year earlier.

Reporting by Neha Malara; Editing by Shounak Dasgupta

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