Intel shares drop 6% after rare revenue miss in Q4 earnings. Lucas Matney 8 hours
Intel shares are down 6 percent after-hours after the company announced a rare revenue miss in its Q4 earnings report and lower-than-expected Q1 guidance. The company reported a Non-GAAP EPS of $1.28 on revenue of $18.66 billion (up 9 percent year-over-year). Wall street was expecting an EPS of $1.22 on revenue of $19.01 billion.
Intel’s PC-centric business grew 10 percent YoY to $9.8 billion while its Data-centric businesses were up 7 percent YoY to $6.1 billion in revenue. The company saw healthy gains across divisions, with the exception being a 7 percent year-over-year decline in its Internet of Things Group revenues.
Semiconductor companies are facing a lot of the same uncertainties as others in the broader tech industry as concerns grow that a slowing Chinese economy and possible trade war could compound longer tail factors facing chipmakers.
As competition has heated up in the semiconductor space, Intel has been very public about its efforts to diversify with more data-focused efforts in cloud, AI, 5G and IoT.
The firm’s share price is relatively unchanged from 12 months prior. Intel closed Thursday at $49.76, near the center of its 52-week range of $42.04 to $57.60.
The company is also facing management questions as it’s been without a permanent CEO since Brian Krzanich resigned this past June. CFO Bob Swan has been serving as Intel’s interim CEO since that announcement, but few updates have been given regarding the company’s ongoing search.
We’ll have more updates as we listen to the investor call this afternoon.