Katie Tarasov / CNBC : Intel reports Q3 revenue up 21% YoY to $16.5B, vs. $16.5B est., and forecasts Q4 revenue and adjusted EPS below estimates; INTC drops 16%+ after hours — Intel shares plummeted in extended trading on Thursday after the chipmaker issued a weak fourth-quarter forecast, citing continued softness in the global PC market.
Intel reports Q3 revenue up 21% YoY to $16.5B, vs. $16.5B est., and forecasts Q4 revenue and adjusted EPS below estimates; INTC drops 16%+ after hours (Katie Tarasov/CNBC)
In short
The chipmaker faced a steep stock decline during extended trading on Thursday after releasing lower-than-anticipated targets for the upcoming quarter. Management attributed the sub-par fourth-quarter revenue and adjusted earnings per share outlook directly to persistent softness in the global PC market. Although third-quarter revenue achieved a 21% year-over-year increase to reach $16.5 billion, the achievement simply matched consensus expectations. Consequently, the disappointing guidance completely eclipsed the company's recent quarterly performance.
Key points
- Investor reaction was heavily dictated by the lower-than-expected guidance rather than ma…: Investor reaction was heavily dictated by the lower-than-expected guidance rather than matching third-quarter results.
- Management specifically identified ongoing softness in the worldwide PC industry as the r…: Management specifically identified ongoing softness in the worldwide PC industry as the reason for the shortfall.
- The steep after-hours share decline demonstrates immediate market sensitivity to the chip…: The steep after-hours share decline demonstrates immediate market sensitivity to the chipmaker's near-term profitability outlook.