Intel forecasts fourth-quarter revenue below expectations, sending shares lower
Intel shares fell sharply in after-hours trading Thursday after its fourth-quarter outlook came in below Wall Street expectations. Stocks Down Under and Financial News put the decline at about 17%, while CTech reported around 18%. Intel forecast revenue of $15 billion to $16 billion; CFO David Zinsner expects the PC-market slowdown to persist through at least the first half of next year.
More context
Intel shares plunged in after-hours trading Thursday after its fourth-quarter outlook fell short of Wall Street expectations. Financial News and Stocks Down Under reported a decline of nearly 17%, while CTech put the drop at around 18%. Intel forecast fourth-quarter revenue of $15 billion to $16 billion and adjusted profit of 25 cents per share, below analyst estimates of about $17.07 billion and 43 cents. Sales in its PC chip business fell 5% to $8.10 billion, missing estimates of $8.98 billion. CTech said a production disruption at an Israeli factory added to pressure from the PC market slowdown. Intel CFO David Zinsner expects the slowdown to continue at least through the first half of next year. Intel also forecast a 37% fourth-quarter gross margin, citing cost pressures from a global memory-chip shortage.
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Reporting
- CTech — Intel shares plunge as Israel factory blast compounds weak outlook | Ctech
- The Financial News (South Korea) — Memory shortage trips up Intel as shares plunge 17% - First-Class Business Newspaper Financial News
- globalbankingandfinance.com (with Reuters) — Intel Warns of Continued PC Market Slowdown, Lowers Revenue Outlook
- stocksdownunder.com — Intel (NASDAQ:INTC) Stock Crashes 17% After Earnings as Weak Q4 Outlook Sparks Selloff
Verifier’s note
CTech, Financial News, Global Banking & Finance, and Stocks Down Under all describe Intel’s October 29 selloff following a weaker outlook; CTech and Financial News explicitly connect the outlook to the PC slowdown. The reports are consistent with the proposed event and timing.