Intel Plunges 23% After Hours as Q4 Guidance Falls Well Short of Estimates
INTC has more than doubled off its 52-week low of $32.89.
Summary
Intel shares dropped 23% in after-hours trading Thursday after Q4 guidance came in far below consensus. Revenue of $16.5 billion was in line and EPS of $0.52 beat the $0.40 estimate, but the forward outlook is what broke the stock: Q4 EPS guided to $0.25 and revenue to $15-16 billion versus the $17.1 billion analysts projected. The AI and data-center business grew 78% year-over-year, yet client computing fell 5% and CFO David Zinsner said the PC slowdown will persist through at least the first half. An explosion at Intel's Israel fab earlier this month will cost roughly $600 million in revenue across two quarters, compounding the guidance cut. The move follows the 8-K filed tonight reporting the same Q3 results, and it lands after a 133% year-to-date run, so the selloff is a repricing of a stock that had already priced in a lot. Peers fell in sympathy: AMD -6.5%, Nvidia -2.5%, Qualcomm, Broadcom and Micron down 4-5%.
At the time of this announcement, INTC was trading at $70.87 on NASDAQ in the Technology sector, with a market capitalization of approximately $486.7B. The 52-week trading range was $32.89 to $142.35. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: CNBC TV18.