Intel Shares Fall 4% as Q4 Revenue Forecast Underwhelms

IntelTechnology giant Intel Corporation (NASDAQ:INTC) posted better-than-expected third quarter earnings results after the bell today, but its tepid Q4 revenue outlook sent shares lower in late trading.

In its latest quarterly report, the Santa Clara-based company disclosed Q3 EPS of $0.80, easily surpassing expectations for $0.72. Revenue rose 9.1% from last year to $15.78 billion, also beating analyst estimates of $15.61 billion.

Intel also noted that its adjusted gross margin in Q3 was 64.8%, up from 63.5% last year.

Looking ahead, INTC forecast Q4 revenues of $15.2 to $16.2 billion, which could miss Wall Street’s view of $15.88 billion. The company also sees Q4 gross margins of 63%, plus or minus 2%.

From the press release:

“It was an outstanding quarter, and we set a number of new records across the business,” said Brian Krzanich, Intel CEO. “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.”

ETF investors will note that Intel is a huge component of the Market Vectors Semiconductor ETF, making up over 15% of the fund’s holdings. That means INTC has the potential to significantly affect the performance of SMH, should its share price move significantly in either direction.

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Intel shares fell $1.42 (-3.76%) to $36.33 in after-hours trading Tuesday. Prior to today’s report, INTC had gained 9.58% year-to-date, versus a 4.83% rise in the benchmark S&P 500 during the same period.