Micron Turns In Better-Than-Expected Q3 Results, Shares Jump

Micron Technology Inc MU shares are trading higher in Wednesday's after-hours session on the heels of the company's third-quarter report. Here's a rundown of the results and a look at what's driving the action.

What Happened: Micron reported third-quarter revenue of $3.75 billion, which beat the consensus estimate of $3.65 billion, according to Benzinga Pro. The company reported a quarterly loss of $1.43 per share, which beat analyst estimates for a loss of $1.58 per share. 

"Micron delivered fiscal third quarter revenue, gross margin, and EPS all above the midpoint of the guidance range," said Sanjay Mehrotra, president and CEO of Micron. 

"We believe that the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored." 

Micron expects fourth-quarter revenue to be between $3.7 billion and $4.1 billion versus estimates of $3.89 billion. The company anticipates a fourth-quarter adjusted loss of $1.12 to $1.26 per share versus estimates for a loss of $1.06 per share.

Micron noted that the Cyberspace Administration of China's decision to ban Chinese companies from buying Micron products is a significant headwind slowing the company's recovery and impacting its forecast.

Shares appear to be reacting favorably to the company's better-than-expected results despite the company's weak earnings outlook. 

Management will hold a conference call to discuss at 4:30 p.m. ET.

See Also: Stocks Hold Steady, US Mulls China Chip Restrictions, Powell Sounds Hawkish: What's Driving Markets Wednesday

MU Price Action: Micron shares were up 3.18% after hours at $69.19, according to Benzinga Pro.

Photo: courtesy of Micron.