Micron Technology ($MU) has been hit hard in the trade war already - and analysts are backing away from the stock warning of potential underperformance as it prepares to announce earnings Tuesday June 24.
In a June 20 report Goldman Sachs analysts rated Micron as one of the listed companies having the "highest revenue exposure to Greater China." And Friday, June 21, a JPMorgan analyst reduced the company's rating and forecast lower earnings. Alternative data paints a negative picture as Micron Technology CEO Sanjay Mehrotra prepares for more analyst questions for its earnings report for Tuesday June 25.
Cutting Job Postings
Micron has cut its job postings in China by 48% since their peak in May 2018 (above). That's more than the company has reduced job postings overall - a little more than 40% since their peak in March 2019, as our second chart shows.
Micron's dependence on Huawei Technologies ($PRIVATE:HUAWEI) for 13% of its revenue leaves it particularly exposed, analysts noted. It seems Wall Street knew Micron would face challenges almost the instant that trade war rhetoric began - shares peaked for the last decade-plus in May 2018, around the same time Presidents Donald J. Trump and Xi Jinping started talking tariffs. From there, it was a fast ride down; the stock has lost more than 40% of its value in the time since.
A group of analysts tracked by Zacks Investment Research expect the company will earn $0.76 per share, a big step back from prior quarters' profitability. The company reports Tuesday June 25 after the bell.
About the Data:
Thinknum tracks companies using information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.