Micron Technology warned trade uncertainty will be a drag on its first-quarter profit, sending shares sharply lower.
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Ticker | Security | Last | Change | %Chg |
---|---|---|---|---|
MU | MICRON TECHNOLOGY INC. | 44.47 | -4.13 | -8.50% |
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.
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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.
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Shares of other chipmakers were lower following Micron’s warning.
Ticker | Security | Last | Change | %Chg |
---|---|---|---|---|
NVDA | NVIDIA CORPORATION | 177.25 | -0.09 | -0.05% |
INTC | INTEL CORPORATION | 51.16 | +0.24 | +0.47% |
QCOM | QUALCOMM INC. | 77.83 | +0.48 | +0.62% |
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.