uploads///Intel pixabay

Intel Stock Is Down in Extended Trading after Soft Q4 Results


Jan. 25 2019, Updated 3:41 p.m. ET

Intel’s stock price movement

Intel (INTC) stock fell as much as 8% in extended trading on January 24 after the chip maker reported a soft fourth quarter of 2018 and weak guidance for 2019. Intel stock rose 3.8% and closed at $49.76 on January 24 amid a broader chip stock rally. The stock has risen ~6.0% since the beginning of 2019 and ~1.9% in the past year as of January 24.

In comparison, the shares of Intel’s peers NVIDIA (NVDA), Qualcomm (QCOM), and Micron (MU) have fallen ~35%, ~22.1% and ~16.2%, respectively, in the last year amid a major tech sell-off due to trade war fears, rising interest rates, and a sudden surge in demand in the PC market. In contrast, Advanced Micro Devices (AMD) has risen ~61% in the same period.

Article continues below advertisement

Sluggish fourth-quarter results

Intel posted adjusted EPS of $1.28 in the quarter, higher than analysts’ consensus expectation of $1.22. Its earnings also increased 18% YoY (year-over-year). Strong revenue and lower operating expenses drove its earnings growth in the quarter.

The company’s revenue of $18.66 billion increased only 9% YoY in the fourth quarter, lower than the previous quarter’s growth of 19%. Its soft revenue was the result of weaker demand in China, slower cloud spending, and falling flash memory prices. Its revenue also missed the consensus estimate of $19.01 billion.

Slower cloud demand is expected to pressure the company’s first half of 2019. Nevertheless, it expects the trend to improve in the second half.

Poor guidance

The semiconductor giant expects weak guidance for the first quarter of 2019 after reporting weaker-than-expected revenue in the fourth quarter due to a slowdown in China and weaker demand for its data center and modem chips.

Looking forward, Intel expects adjusted EPS of $0.87 and revenue of $16 billion in the first quarter. For 2019, Intel expects adjusted EPS of $4.60 and revenue of ~$71.5 billion.


More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.