Intel Corporation (INTC) Shares Slide on Weak First Quarter Outlook

Intel Corporation (NASDAQ:INTC) shares was down in after hours trading on Thursday on news of a gloomy first quarter, after the chipmaker have posted fourth quarter that beat expectations. Currently trading at $36.19 per share at the NASDAQ, Intel stock was down 2.8 percent, or as much as  $35.16, in extended session before closing to its current rate.

The company forecasts a revenue for the first quarter at $13.76 billion, plus or minus $500 million. While it beats revenue posted for the same period of the previous year at $12.8 billion, it falls short of analysts’ expectations. The company puts gross margins to be about 60 percent, lower than the 65.4 percent posted for the fourth quarter. According to Thomson Reuters I/B/E/S, analysts expected Intel Corporation (NASDAQ:INTC) to report a first quarter revenue of $13.77 billion.

Intel Corporation (INTC)Fourth quarter results indicates a revenue of $14.7 billion, up from $13.8 billion posted in 2013. Sales for the whole year was up $55.9 billion from $52.7 billion the previous year. Profits for the quarter is at $3.7 billion, a growth of 39 percent, while yearly profits is at $11.7 billion, indicating a growth rate of 22 percent. Intel Corporation (NASDAQ:INTC)’s fourth quarter revenue from its PC business, at $8.9 billion, posted a growth of 3 percent against the previous year, but it fell short of the $9.2 billion expected by Wall Street. The company’s current outlook for its PC unit expects a flat growth, as well as a slight decline in prices.

On the other hand, Intel Corporation (NASDAQ:INTC)’s mobile device unit continued on a trend of declining performance, and was down as much as 85 percent for 2014 as against 2013, with sales at $202 million.

This article has been written by Nonito Guntan.

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