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(Sharecast News) - Chipmaker Intel traded sharply lower in pre-market action on Friday after it issued a weak fourthquarter outlook and warned that a global PC slowdown would persist well into next year.
For the third quarter, Intel posted adjusted earnings per share of $0.52, ahead of the $0.40 expected, on $16.51bn of revenues, broadly in line with forecasts and up 21% from $13.7bn a year earlier.
However, revenues in its client computing and physical AI division fell 5% yearonyear to $8.1bn, missing estimates, even as datacentre and AI revenue surged 78% to $7.3bn. Intel also noted that global PC shipments dropped 4% in Q2 amid sharply higher component costs.
Intel guided to Q4 adjusted EPS of $0.25 on revenues of $15bn to $16bn, well below analyst expectations of $0.43 and $17.1bn. Finance chief David Zinsner said the PC downturn was likely to continue "at least through the first half of next year", adding that Intel would keep investing "disciplinedly" in capacity and working capital to support future growth.
The California-based firm's outlook also reflected the impact of an explosion at an Israeli fabrication plant earlier in October that killed two workers and injured another. Zinsner said the incident would reduce revenues by around $600m over two quarters.
As of 1140 GMT, Intel shares were down 25.65% in pre-market trading at $68.45 each.
Reporting by Iain Gilbert at Sharecast.com
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