Intel Corporation (INTC) Stock: Falls Hard on Poor Guidance

Intel Corporation (NASDAQ: INTC)

Intel Corporation is having a rough day in the market today. The reason isn’t so simple this time around. Ultimately, the company announced earnings for the third quarter. While the financial data for the quarter proved to be positive, concerns with regard to guidance sent the stock tumbling. Today, we’ll talk about what we saw from the report, how the stock is reacting to the news, and what we can expect to see from INTC ahead.

INTC Reports Q3 Financial Results

As mentioned above, Intel Corporation is having a rough day after reporting financial results for the third quarter and expectations for the fourth. Here’s what we saw from the report…

  • Earnings Per Share – In terms of earnings per share, INTC definitely did not disappoint investors. During the third quarter, analysts expected that the company would generate earnings in the amount of $0.73 per share. However, the company actually reported earnings in the amount of $0.80 per share. This figure not only beat analyst expectations, it showed incredible year over year growth over $0.64 per share.
  • Revenue – During the third quarter, INTC also did incredibly well in terms of revenue. During the quarter, the company reported revenue in the amount of $15.78 billion. That proved to be a 9% improvement in the top-line figure!
  • Guidance – While revenue and earnings were both very positive, Intel concerned investors with regard to guidance. During the fourth quarter, the company said that it’s expecting to generate revenue in the amount of $15.7 billion. The company didn’t offer any per-share guidance. For the quarter, analysts are expecting that the company will earn $0.76 per share on revenue in the amount of $15.85 billion.

In a statement, INTC CEO, Brian Krzanich had the following to offer…

It was an outstanding quarter, and we set a number of new records across the business. In addition to strong financials, we delivered exciting new technologies while continuing to align our people and products to our strategy. We’re executing well, and these results show Intel’s continuing transformation to a company that powers the cloud and billions of smart, connected devices.”

How The Stock Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. In this particular case, investors could have viewed the news as positive or negative. However, it’s clear that they have taken the negative view. This can be seen in the movement we’re seeing in the stock at the moment. Currently (12:27), INTC is trading at $35.39 per share after a loss of $2.36 per share or 6.25%.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively bullish opinion of what we can expect to see from Intel Corporation shares. While the stock was hit relatively hard by the weak guidance, we’re talking about a company that knows its industry. INTC is known for innovating and creating incredible products, and selling those products on a large scale. In the long run, this stock is still a great buy.

What Do You Think?

Where do you think INTC is headed moving forward? Join the discussion in the comments below!