Intel on Thursday missed revenue expectations for the fourth quarter and supplied a income forecast for its March quarter far beneath Wall Street’s expectations.
The chip maker stated its enterprise in China was the weakest area relative to preliminary expectations for the fourth quarter.
Intel reported fourth-quarter adjusted earnings per share of 10 cents, in comparison with Wall Street’s consensus estimate of 21 cents, in line with FactSet. Revenue got here in at $14 billion which was beneath with analysts’ expectations of $14.49 billion.
For the present quarter, Intel gave income forecast vary of $10.5 billion to $11.5 billion—effectively beneath the consensus of $13.93 billion.
Intel shares fell 8% to $27.64 in after hours buying and selling, following the discharge.
In a telephone interview with Barron’s, Intel Chief Financial Officer David Zinsner stated the chip maker didn’t have sufficient visibility past the primary quarter to offer a full 12 months monetary forecast, citing financial uncertainty. The government stated the corporate’s enterprise in China was the worst geography relative to expectations in the course of the December quarter. He additionally expects prospects will scale back their chip inventories dramatically in the course of the present quarter.
The demand atmosphere for PCs has been deteriorating. According to analysis agency IDC, worldwide shipments of PCs fell 28% within the December quarter from a 12 months earlier after a 15% year-over-year decline within the September quarter. IDC cited a continued unwinding of the pandemic-era increase.
Intel inventory has fallen by 42% over the past 12 months as of Thursday’s closing worth.
Write to Tae Kim at [email protected]