Ahead of the Bell: Micron Technology
(Associated Press Via Acquire Media NewsEdge) NEW YORK (AP) — Micron jumped 9 percent before the opening bell Wednesday after easily beating Wall Street expectations for a first quarter in which it returned to a profit.
Stifel Nicolaus analyst Kevin Cassidy backed his "Buy" rating for the stock, crediting the better-than-expected results to improving prices for some computer chips.
Cassidy, who also increased his price target by $5 to $31, was impressed with the company's operational improvements, adding that Micron is quickly moving to a period of long-term profitability as its industry matures.
Monika Garg of Pacific Crest Securities backed her "Sector Perform" rating for the stock. She said that while Micron is executing well in improved markets, she remains concerned that the pricing of some chips could soon begin to fall.
The Boise, Idaho, company posted an adjusted profit of 77 cents per share, easily beating the average estimate of analysts polled by FactSet of 52 cents per share.
Revenue more than doubled to $4.04 billion, mainly as a result of the company's July acquisition of semiconductor maker Elpida Memory Inc. Analysts expected $3.72 billion.
In premarket trading, shares of Micron technology Inc. rose $2.06 to $23.79.
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