Memory maker Micron does well

BN-JJ273_0713MI_P_20150713201819The cocaine nose jobs of Wall Street have emerged screaming from their marble-tiled toilets in shock after it emerged that the memory chip maker Micron had done better than expected.

Micron Technology reported a lower than expected fall in quarterly revenue and that industry breathed a shy of relief. The company’s shares rose as much 8.3 percent.

The company predicted a revenue of $3.35 billion-$3.6 billion for the current quarter, well below analysts’ average expectation of $3.73 billion.

But the DRAM and NAND flash maker reported a 14.8 percent fall in revenue to $3.60 billion in the fourth quarter, compared with a year earlier. Analysts thought that would be $3.55 billion.

Micron said it expects the demand environment to stabilise and improve in 2016.

Micron said net income attributable to the company fell 59 percent to $471 million. Excluding items, the company earned 37 cents per share, trumping analysts’ estimates of 32 cents per share.

Micron is currently being chased by China’s state-backed Tsinghua Unigroup. This little rally might make the company a little more expensive.

Tsinghua, whose unit bought a 15 percent stake in Western Digital Corp for $3.8 billion on Wednesday, has offered $23 billion for Micron. It has not heard back yet because the US is unlikely to want to let one of its companies be owned by a company it thinks will spy on it. Oddly enough, the only country to force its hardware companies to spy on rival governments has been the US.