Intel Stock Tumbles on Lower Data-Centric Revenue
Intel stock price plunged more than 10% in post-market trading as investors reacted to a big decline in data-centric revenue despite topping revenue estimates for the third quarter and lifting full-year outlook.
Its shares fell below the $50 level for the first time since March this year. Intel stock price is now down 10% year to date, but the shares are still up 2% in the past twelve months. The shares of a tech company have hit a 52-weeks high of $70 at the beginning of this year.
Data-centric revenue negatively impacted Intel Stock
Intel’s third-quarter revenue of 18.3 billion fell 4.7% year over year, but revenue topped analysts’ expectations by $40 million. Its data-centric revenue plunged close to 10% from the past year period.
Meanwhile, PC-centric revenue soared 1% to $9.8 billion as the pandemic tailwind continues for the PC industry.
The company says they performed stronger than original expectations during the third quarter.
“Our teams delivered solid third-quarter results that exceeded our expectations despite pandemic-related impacts in significant portions of the business,” said Bob Swan, Intel CEO.
Intel expects improving demand trends
The company has raised the fourth quarter and full-year revenue outlook despite the pandemic related impact. It now expects fourth-quarter revenue in the range of $17.4 billion compared to the consensus estimate for $17.38 billion. The earnings are likely to stand around $1.10 per share, up from the consensus estimate for $1.07 per share.
“Nine months into 2020, we’re forecasting growth and another record year, even as we manage through massive demand shifts and economic uncertainty,” Bob Swan added.
Intel anticipates full-year revenue in the range of $75.3 billion from the previous outlook for $75 billion, with expectations for earnings around $4.90 per share. Intel stock price has also been under pressure due to increasing market competition from AMD.