INTC warned after market closed on March 4, 1998.
Belowe is Briefing.com's note on the warning:
The latest from Briefing.com
Intel (INTC) Update: Intel did not specifically note its earnings expectations for Q1, but based on the $650 mln revenue shortfall and its gross margins, we can expect analysts' estimates to come down about $0.20 from the current First Call consensus of $0.93. Other bad news: this Q1 shortfall was not just an Asia story; Intel cited weakness in Europe and the Americas as well. And still more bad news, margins fell to 53% in Q1. In January, Intel said that margins were "expected to be down a few points from 59 percent" in Q4 -- the decline to 53% sounds like more than a "few points." While many will be quick to note that Q1 is typically weak for Intel, it is not this weak. In the last three years, revenues have always risen sequentially from Q4 to Q1; this year they will fall 10%. Even year/year trends look ugly -- revenues will be down over 9% year/year in Q1; from 1995-97, year/year revenue growth averaged 30%. One positive (or not so negative) note: Intel said that expenses will be about 5% higher than their January estimate, but this increase is due entirely to a nonrecurring charge related to the Chips & Technologies acquisition.
After Hours Trading Update: Intel has now dropped to 74 on Instinet. Other tech stocks are following suit; here's a list of current quotes with the NY close in parentheses: DELL 133 (138 7/8), IBM 99 (102 1/16), CPQ 28 (29 1/2), TXN 52 1/2 (55), MU 33 3/4 (35 5/8), MSFT 79 1/2 (82 5/16). |
