Chipmaker Micron Technology (Nasdaq: MU) reported a sharp fall in revenues and profit for the third quarter, reflecting the continuing slump in the demand for memory chips. The results, however, surpassed the estimates and the company’s stock gained about 4% Tuesday afternoon.

Micron Technology posts Q3 2019 earnings results

Adjusted earnings, excluding special items, plunged to $1.05 per share in the third quarter from $3.15 per share a year earlier but exceeded the forecast. Unadjusted profit was $840 million or $0.74 per share, compared to $3.82 billion or $3.10 per share in the third quarter of 2018.

Dragging down the bottom-line, revenues slipped to $4.79 billion from $7.80 billion in the prior year period but came in above the consensus estimate.

The results surpassed the estimates and the company’s stock gained about 4% Tuesday afternoon

“Micron’s improved competitive position and strong execution helped us deliver solid results despite a challenging environment. While we are seeing early signs of demand improvement, we plan to reduce our capital expenditures in fiscal 2020 to help improve industry supply-demand balance,” said CEO Sanjay Mehrotra.

During the first nine months of the year, the company repurchased around 67 million shares for $2.66 billion under the authorized buyback program.

Also see: Micron Technology Q2 2019 Earnings Call Transcript

Micron’s second-quarter results were negatively impacted by the unfavorable pricing trends for the DRAM and NAND memory chips. Then, revenues dropped 20% to $5.8 billion, sending earnings down 40% to $1.71 per share.

While releasing the report, the management had guided third-quarter earnings below the Street view, triggering a stock selloff. Giving hopes of a near-term recovery, it said demand will pick up in the second half of the year, while also predicting an improvement in inventory levels.

Among rivals, Intel (INTC) recently reported revenues of $16.1 billion for its most recent quarter, when adjusted earnings rose 2% to $0.89 per share. The results topped the street view.

Micron’s stock closed Tuesday’s regular session slightly lower and was broadly at the levels seen at the beginning of the year. The shares, which lost about 37% in the past twelve months, rose sharply during the extended session after the earnings report.

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