Intel plunges about 21% after hours on a weak forecast, blaming a PC slowdown and a deadly fab explosion
CNBC explains the guidance gap, the cost of the Israel fab shutdown and where Intel's foundry business stands.
Intel shares fell more than 20% in extended trading on October 29 after the company forecast fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of 25 cents a share; analysts expected $17.1 billion and 43 cents, per LSEG.
Third-quarter revenue rose 21% from $13.7 billion a year earlier. Data center and AI revenue jumped 78% to $7.3 billion, while the client computing group fell 5% to $8.1 billion. Finance chief David Zinsner said the PC slowdown should continue at least through the first half of next year. He said an explosion earlier this month at a fab in Israel, which killed two workers, will cost about $600 million in lost revenue over two quarters.
CNBC notes the stock was up about 150% this year before the report, though down roughly 23% in October.
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Earnings guidance
After exploring Intel stock plunges 21% as chipmaker blames PC slowdown for weak guidance, to see why a forecast can move a stock more than the results, read Earnings guidance.
Wikipedia explains earnings guidance as a public company's official prediction of its own near-term profit or loss, usually given per share alongside quarterly results.
Wikipedia · Wade · 5 min
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