Intel revenue warning causes stock to slide 18.5%


Intel revenue warning causes stock to slide 18.5%

Processor manufacturer Intel saw its stock price slide more than 18% on Friday (7 June 2002), a day after the chip maker lowered its second-quarter revenue forecast due to slower-than-expected business in Europe.

Intel's shares on the Nasdaq exchange closed on Friday at $22 (£15), down $5 (£3) on the day, or 18.5%, to reach their lowest closing price in eight months. Shares of Advanced Micro Devices (AMD), one of Intel's main rivals, also dipped, falling 7.5% to close at $9.81.

Intel said on Thursday (6 June) in a mid-quarter business update that its revenue for the quarter, which ends 29 June, probably will be between U$6.2bn and $6.5bn, down from its previous guidance of $6.4bn to $7.0bn.

Besides weak demand in Europe, the company said its results for the quarter have been hurt by a "weaker than expected mix," meaning it sold more of its lower priced Celeron processors than it had forecast, and fewer of its higher priced Pentium 4 chips. Intel said it expects performance in the second half of the year to be brighter.

Analysts had been expecting second-quarter revenue of $6.7bn and earnings per share of $0.15, according to a consensus estimate from Thomson Financial/First Call. In the second quarter of 2001, Intel posted revenue of $6.3bn and earnings per share of $0.12.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy