Strong Results Push Micron Technology Inc. (NASDAQ:MU) Higher
The stock of the $25.32 billion market capped Micron Technology, Inc. (NASDAQ:MU) posted a huge 9.85 percent increase in its market value during trading on January 8, thanks to buoyant revenue and sales figures reported by the firm as part of its 1Q14 results announcement on January 7. Yesterday’s market rally adds to the 230 percent increase in the value of the shares, of this global semiconductor solution provider. In the past one year, the stock of this firm has been on a roll as it has managed to post sales of $9 billion over the trailing 12 months and posted net income of $1.19 billion for the same period.
Spectacular Growth In 1Q
From its first quarter, Micron Technology, Inc. (NASDAQ:MU) had reported revenue of $4.04 billion. This translates into a net income increase of $385 million for the quarter. Its management team explained that the completion of the acquisition of Elpida helped the firm in increasing its sales volume by a super impressive 69 percent in its DRAM business. The general increase in the price of memory chips has also helped the firm record positive cash flows from its 1Q operations which stood at $1.51 billion. Its sales for the quarter showed a 44 percent increase in comparison to 1Q13. In its efforts to bolster its future growth prospects, the maker of memory chips has ploughed in close to $669 million during its first quarter operations. Thanks to these positive developments in its operations, the firm was able to announce a earnings of $0.27 per share for the quarter. This represents a huge 708 percent increase in EPS in 1Q14 in comparison to 1Q13.
Positive Outlook For 2Q
Thanks to the strong build up in the demand for its DRAM and NAND products in the industry the management feels that they are well placed to carry the momentum of 1Q well into 2Q.