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Last Update: 12-Dec-11 09:34 ET
Intel Trading Lower After Issuing Downside Guidance This Morning
Intel (INTC $24.14 -0.87) is down 3.6% after reporting that its fourth quarter revenue is expected to be below expectations due to hard disk drive supply shortages.
This morning, the company announced that it's forecasting fourth quarter revenues to be $13.4 billion to $14.0 billion versus the $14.67 billion Capital IQ Consensus Estimate and below prior guidance of $14.7 billion due to hard disk drive supply shortages.
The company states sales of personal computers are expected to be up sequentially in the fourth quarter. However, the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012.
The company now expects the fourth-quarter gross margin to be 64.5%, plus or minus a couple of percentage points, lower than the previous expectation of 65 percent, plus or minus a couple of percentage points. The expectation for a non-GAAP gross margin is 65.5%, plus or minus a couple of percentage points, lower than the previous expectation of 66%, plus or minus a couple of percentage points.
This morning, the company announced that it's forecasting fourth quarter revenues to be $13.4 billion to $14.0 billion versus the $14.67 billion Capital IQ Consensus Estimate and below prior guidance of $14.7 billion due to hard disk drive supply shortages.
The company states sales of personal computers are expected to be up sequentially in the fourth quarter. However, the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012.
The company now expects the fourth-quarter gross margin to be 64.5%, plus or minus a couple of percentage points, lower than the previous expectation of 65 percent, plus or minus a couple of percentage points. The expectation for a non-GAAP gross margin is 65.5%, plus or minus a couple of percentage points, lower than the previous expectation of 66%, plus or minus a couple of percentage points.
