Micron climbs 6% after boosting sales guidance by more than expected (MU)

Reuters

• Micron climbed 6% on Wednesday after the company raised its fiscal third quarter revenue guidance to a range of $5.2 billion to $5.4 billion, according to an 8-K filed with the SEC.
• The company's raised guidance was well ahead of its previously forecast range of $4.6 billion to $5.2 billion and consensus third quarter revenue estimates of $4.91 billion.
• The announcement from Micron helped boost other chipmakers' shares, with the PHLX Semiconductor Index turning positive after the news.
• The semiconductor company filed the 8-K with the SEC midday on Wednesday in connection to remarks made by CEO Sanjay Mehrotra at the 2020 Bernstein Strategic Decisions Conference.
• Read more on Business Insider.

Micron climbed 6% on Wednesday after the company raised its fiscal third quarter revenue guidance, according to an 8-K filing with the Securities and Exchange Commission.

Here are the key numbers:

Revenue: $5.2 billion to $5.4 billion, versus the $4.91 billion estimate
GAAP earnings per share: 61 cents to 66 cents, versus the 56 cents estimate
Gross margin: 32% to 33%

Micron raised the lower end of its revenue guidance by $600 million. Micron's previous revenue guidance for the third quarter was a range of $4.6 billion to $5.2 billion.

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The announcement from Micron helped boost other chipmakers' shares on Wednesday, with the PHLX Semiconductor Index turning positive for the day after Micron's news.

The iShares PHLX SOX Semiconductor ETF was up a half percent Wednesday afternoon, after being down as much as 2.5% Wednesday morning.

Prior to the guidance announcement, Micron traded down as much as 4% to $43.90 in Wednesday morning trading. 

Following the guidance hike, Micron traded as much as 6% higher to $48.50.

The semiconductor company filed the 8-K in connection to remarks made by CEO Sanjay Mehrotra at the 2020 Bernstein Strategic Decisions Conference.

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