Chip maker put forward a tepid $12.3 billion to $13.2 billion in first-quarter revenue and that disappointed Wall Street who had bigger hopes.
Intel shares (ticker; INTC) tumbled a hefty 12% on Friday after the semiconductor company delivered strong earnings but failed to carry the optimism over to the current quarter. For the December trimester, Intel earned 54 cents a share, comfortably beating Wall Street’s 45 cents consensus.
Revenue for the world’s biggest maker of computer processors arrived at $15.4 billion, outpacing the $15.2 billion expected by analysts. Challenges for the programmable-chip unit were the reason for Intel to roll back the lofty outlook and present a more ho-hum view of its current-quarter performance.
Intel said it is looking to pick up revenue of $12.3 billion to $13.2 billion for the March quarter, leading to the steep selloff in the stock. The guidance fell short of analysts’ consensus call for $14.2 billion. Shares of the chip maker are down about 9% on the year, floating near the $44 mark.