Micron warns trade war to ding profit
Micron Technology warned trade uncertainty will be a drag on its first-quarter profit, sending shares sharply lower.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MU | MICRON TECHNOLOGY INC. | 111.93 | -4.40 | -3.78% |
Chipmakers are particularly vulnerable to trade with China, which is a critical source of demand. While Micron has resumed some shipments to the Chinese technology company Huawei, it says business could take a hit if restrictions continue.
“We are encouraged by signs of improving industry demand, but are mindful of continued near-term macroeconomic and trade uncertainties,” Micron Technology President and CEO Sanjay Mehrotra said in the company’s fourth-quarter earnings release Thursday evening.
The company forecast adjusted first-quarter profit of 35 cents to 49 cents per share, below the 48 cents that was expected by analysts surveyed by IBES data from Refinitiv.
Shares of other chipmakers were lower following Micron’s warning.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 846.71 | +6.36 | +0.76% |
| INTC | INTEL CORP. | 35.04 | -0.64 | -1.79% |
| QCOM | QUALCOMM INC. | 161.47 | -2.85 | -1.73% |
Micron said revenue fell 42.3 percent year over year in the fourth quarter to $4.87 billion, topping the $4.57 billion that was expected. It earned an adjusted 56 cents per share, which was ahead of the 49 cents that analysts were looking for.
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Micron shares were up 54 percent this year through Thursday.