Intel Corp. shares plunged in the extended session Thursday after the chip maker missed Wall Street estimates by a wide margin and cut its outlook for the year, acknowledging a slowing market as well as execution issues.
For the year, Wall Street estimates earnings of $3.34 a share on revenue of $74.46 billion. Last quarter, Intel had doubled down on an optimistic outlook for the year of about $3.60 a share on revenue of about $76 billion with gross margins of 52%, which had placed an enormous pressure to deliver in the second half of the year.“The market turbulence and update outlook is disappointing,” Zinsner said on the call.
In-depth: Are chip stocks set up for a short squeeze, or just more declines? Wall Street doesn’t seem sure Shares immediately dropped more than 10% after hours, but were down about 7% at last check, as the company’s call with analysts kicked off. Shares finished the day with a 1.2% decline in the regular session to close at $39.71.