Intel shares tumble after downgraded outlook
Both earnings and revenues, in Q4, were a disappointment for Intel. As a result, its stock fell last night, but the downside then accelerated after the company confirmed the outlook for the first quarter of 2023 was equally poor.
Intel shares drop
The world's largest chipmaker Intel saw its fourth quarter (Q4) published last night and shares fell more than 8% as a result.
The chipmaker published fourth quarter results that failed to meet estimates and gave a weaker than expected outlook. Earnings per share (EPS) were 10 cents against an adjusted 22 cents forecast. Revenue was €14.4 billion against €14.5 billion expected by analysts, with revenue falling 32% year-on-year (YoY) in the fourth quarter, which is the fourth consecutive quarter of falling sales.
As the market for personal computers shrank from the Covid lockdown boom, investors can expect more pain in the first quarter as well. According to the announcement last night, Intel estimates that first quarter adjusted net loss will come in at 15 cents per share. Earlier estimates had been for 24 cents.
Share price chart
Let's take a look at the share price chart and the move that we saw in yesterday's trade. A really big, heavy candle on the way down.
On revenues €10.5 billion they're looking for, between €10.5 and €11.5 billion in the first quarter, forecast recently €13.9 billion in revenue, so pretty much every single metric on the way down for Intel.
I want to show you the long-term picture to show you where it's come from with these highs back here on the 8th of April last year, we've lost 64% of value. Since then the stock has gained 24% but you can see that quite a sizable chunk of that has been eradicated with this drop that we've seen in shares as of last night's trade all-sessions on the IG platform.
We're expecting to open down around about 5- or 6% at the start of the day's trade when things get underway on Wall Street a little bit later on today. But the trade late last night, $27.17 a share.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.