04:56 PM EDT, 03/20/2024 (MT Newswires) -- Micron Technology ( MU ) late Wednesday unexpectedly swung to a profit for the fiscal second quarter as pricing gains propelled the memory and storage product maker's revenue above Wall Street's estimates.

Micron reported adjusted per-share earnings of $0.42 during the three months ended Feb. 29, compared with a $1.91 loss a year earlier. The Capital IQ-polled consensus indicated a $0.24 loss. Revenue rose to $5.82 billion from $3.69 billion, topping the Street's $5.35 billion view.

The stock was soaring 15% in after-hours activity.

"Micron has returned to profitability and delivered positive operating margin a quarter ahead of expectation," Chief Executive Sanjay Mehrotra said in prepared remarks posted on the company's website.

All four business units posted sharp revenue gains year over year, led by a 79% surge in storage and 69% growth in mobile, according to an investor presentation.

"Micron drove robust price increases as the supply-demand balance tightened," Mehrotra said. "This improvement in market conditions was due to a confluence of factors, including strong (artificial intelligence) server demand, a healthier demand environment in most end markets, and supply reductions across the industry."

Pricing for dynamic random access memory and NAND chips are expected to increase further throughout the 2024 calendar year, with "record revenue and much improved profitability" now foreseen in fiscal 2025, Mehrotra said in prepared remarks.

For the ongoing quarter, Micron forecast adjusted EPS of $0.45, plus or minus $0.07, on revenue of $6.60 billion, plus or minus $200 million. The consensus is for normalized EPS of $0.21 and sales of $6 billion.

"We are in the very early innings of a multiyear growth phase driven by AI as this disruptive technology will transform every aspect of business and society," Mehrotra said. "Memory and storage technologies are key enablers of AI in both training and inference workloads, and Micron is well positioned to capitalize on these trends in both the data center and the edge."

Micron expects positive free cash flow in the second half of fiscal 2024, Chief Financial Officer Mark Murphy said in prepared remarks.

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