Shares of Micron Technology (MU Quick QuoteMU - Free Report) gained more than 13.3% in morning trading Thursday after the company posted better-than-expected first-quarter earnings and revenue. Micron also pleased investors with its strong guidance.

The company posted adjusted earnings of 28 cents per share, which was up from the year-ago figure of 24 cents per share and beat the Zacks Consensus Estimate by four cents. Revenue came in at $3.970 billion, which beat the Zacks Consensus Estimate of $3.784 billion and surged 18.5% on a year-over-year basis.

Micron also recorded a 23% quarter-over-quarter revenue increase. Revenue was boosted by solid sales growth for both DRAM and NAND sales. DRAM products accounted for 61% of total revenue and grew 18% sequentially, while NAND sales volume grew 26% sequentially.

Additionally, the company’s gross profit increased 19.1% year-over-year to $1.01 billion as gross margin was up slightly to 25.5% from 25.39%.

For the current quarter, Micron expects revenues in the range of $4.35 billion to $4.7 billion. This comes in well above the current Zacks Consensus Estimate of $3.898 billion. Micron’s expected EPS range of 58 cents to 68 cents is also ahead of the Zacks Consensus Estimate of 35 cents.

Micron also expects gross margin in a range of 31% to 34% in fiscal second quarter 2017.

Micron is currently a Zacks Rank #1 (Strong Buy), and its strong guidance could spur even more positive earnings estimate adjustments in the near future.

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