Micron raises third-quarter revenue forecast

FILE PHOTO: Micron Technology’s solid-state drive for data center customers is presented at a product launch event in San Francisco, U.S., October 24, 2019. REUTERS/Stephen Nellis

(Reuters) – Micron Technology Inc (MU.O) raised its revenue forecast for the third quarter on Wednesday to a range of $5.2 billion to $5.4 billion from $4.6 billion to $5.2 billion, sending its shares about 3% higher.

The memory chipmaker said in a regulatory filing www.sec.gov/ix?doc=/Archives/edgar/data/723125/000072312520000053/mu-20200527.htm that it expected adjusted earnings between 75 cents per share and 80 cents per share.

“We had strong demand from our customers – notably in the data center space – and that demand has been driven mostly due to the work-from-home economy, the increased load on the server infrastructure because of everyone working form home, entertaining from home,” Sumit Sadana, Micron’s chief business officer, told Reuters in an interview.

Sadana said Micron also saw increased sales of server chips to retailers expanding their e-commerce operations to handle extra demand while many physical retail locations were shuttered during the novel coronavirus pandemic. Micron also saw increased sales of laptop memory chips for work and education at home.

Analysts had expected a revenue of $4.93 billion and adjusted earnings of 56 cents per share, according to IBES data from Refinitiv.

Reporting by Ayanti Bera in Bengaluru and Stephen Nellis in San Francisco; editing by Uttaresh.V and Sonya Hepinstall