Terrible earnings reports from Micron (MU) yesterday afternoon and Carmax (KMX) this morning add further support to the idea that we’re headed into a recession next year and stocks have not bottomed.
Let’s start with MU. Revenue was almost cut in half to $4.085 billion and EPS was a loss of 4 cents compared to $2.16 a year ago, respectively. And it’s going to get worse. MU’s guidance for the current quarter is revenue of $3.8 billion and a loss of 62 cents/share. That’s brutal.
KMX’s quarter was equally ugly. Comparable revenue was down 21% and EPS 85% compared to a year ago.
Despite the fact that both stocks have already been beaten up they’re going to get hit again today and their bear market lows are likely not in. If they’re any guide to the rest of the market we’re in for a recession next year and lower lows.