“Micron Technology Inc. (MU) reported third quarter fiscal 2013 earnings per share of 4 cents beating the Zacks Consensus Estimate of 3 cents per share. After posting losses in the past seven quarters, this quarter’s beat seems to be a sigh of relief for Micron. The beat can be attributed to favorable memory market condition that led to higher shipments and improved average selling price (ASP). Nevertheless, lackluster PC demand and macro uncertainty remained headwinds.
Micron reported revenues of $2.32 billion, up 6.7% year over year and 11.5% sequentially. The quarter’s revenues came above the Zacks Consensus Estimate of $2.26 billion. The improvement was mainly due to higher DRAM and NAND shipments.
DRAM revenues grew 23.0% from the prior quarter aided by 6.0% hike in sales volume and 16.0% surge in ASP. NAND sales grew 7.0% sequentially due to an 8.0% increase in ASP. NOR flash sales remained flat sequentially.
Higher DRAM ASP was the effect of balancing supply with slowing PC demand. NAND fundamentals improved due to continuous growth in SSD sales.