INSTANT VIEW: Intel warns of weak Q4; sees revenue of $9 billion
NEW YORK (Reuters) - Technology bellwether Intel Corp on Wednesday warned that its revenue would be about 14 percent below its previous forecast due to weak demand around the globe and in all market segments.
COMMENTS:
JOHN MENZIES, PORTFOLIO MANAGER AT PACIFIC GROWTH EQUITIES
IN SAN FRANCISCO
"While I don't think this should come as a huge surprise, there are two things to be noted. First, the magnitude of the miss -- it is a lot larger than most people will have expected.
"And secondly, they're pretty much missing across the board, in every geographic region.
"This is more evidence to the severity of the consumer slowdown. This looks like a big miss, and we're not that far through the quarter.
"You could make the point they are looking to take advantage of an oversold market to become more conservative with their guidance. But then, they've lowered the bar a lot. You're seeing futures reacting to this already."
CHARTER EQUITY RESEARCH ANALYST JOHN DRYDEN
"It's very significant. For revenue to be that far down sequentially it means consumers have basically shut down for the holidays.
"It's so far below what they had expected.
"The company had outlined weakness in enterprise but not the consumer yet. The stock's going to sell off and all semis will sell off on this."
PETER JANKOVSKIS, DIRECTOR OF RESEARCH, OAKBROOK
INVESTMENTS LLC IN LISLE, ILLINOIS
"Given the current market and climate, it's likely to be a negative (for the stock market) in the short run. We're likely to see drops in stocks between 4 and 10 percent. In the long run, I don't think it's a problem at all for the company. In all likelihood, this is a bump in the road and a good buying opportunity.
"It's likely to have a negative impact on the sector as a whole, but again it's very much short-term focused."
AMERICAN TECHNOLOGY RESEARCH ANALYST DOUG FREEDMAN
"It's been largely expected. The real question is not the extent of the cut now but how far into the adjustment cycle we are.
"Is the adjustment cycle taking place faster than in past cycles? How much of this cut gets the bad news out of the way?
"The normal pattern is for Intel to be down 10 to 12 percent in the March quarter and now we are seeing that type of behavior in the December quarter.
"So the real question that investors have ... is what is March is going to look like off of this new number."
(Reporting by Sinead Carew, Deepa Seetharaman, Gina Keating and Kristina Cooke))
