Intel's revenue met expectations (14.7b), their net income per share exceeded (.74 --> .68), but apparently their revenue forecast for Q1 fell just short (13.7 +- 500m) --> 13.8), so the stock is being sold down, at least for the moment and before the CC begins. The miss doesn't seem like a big deal to me, but Intel has had a nice run over the past year, people seem to be looking for reasons to sell their winners these days.
I don't think this headline is all that accurate necessarily, but...
Intel Sales Forecast Misses Estimates, Signaling Deeper PC Slump
By Ian King Jan 15, 2015 4:05 PM ET
bloomberg.com
Intel Corp. (INTC), the largest maker of chips that run personal computers, forecast first-quarter sales that may fall short of analysts’ estimates, sparking concern that the PC industry is headed for a steeper decline.
Revenue will be $13.7 billion, plus or minus $500 million, the company said today in a statement. On average, analysts had estimated sales of $13.8 billion, according to data compiled by Bloomberg.
While corporate demand for new machines helped moderate the PC market’s deterioration last year, the industry has failed to attract enough consumers with new slim laptops designed to compete with tablets and smartphones. Users have learned to live without the keyboards and larger screens of the computers powered by Intel’s processors, said Gus Richard, an analyst at Northland Securities Inc.
“Why would the consumer ever want to buy a PC?” said Richard, who has the equivalent of a hold rating on Intel stock. “The first thing that people do in the morning is check their smartphones.”
Fourth-quarter net income was $3.66 billion, or 74 cents a share, compared with $2.6 billion, or 51 cents, in the same period a year earlier. Revenue was $14.7 billion, the company said today. Analysts on average projected earnings of 66 cents a share on sales of $14.7 billion.
Shares of the Santa Clara, California-based chipmaker fell 1.6 percent in extended trading following the earnings report and forecast. They earlier closed at $36.19 in New York trading and were the best performer on the Dow Jones Industrial Average with a 40 percent rally in 2014.
To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net
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