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Intel (INTC) Lowers Q4 Revenue Guidance - Again

January 7, 2009 9:06 AM EST
Intel Corporation (Nasdaq: INTC) sees Q4 revenues of approximately $8.2 billion, which compares to the consensus of $8.74 billion. This is down 20 percent sequentially and down 23 percent year over year. The preliminary estimate of gross margin for the fourth quarter is at the bottom of the previous expectation of 55 percent, plus or minus a couple of points.

Intel cited further weakness in end demand and inventory reductions by its customers in the global PC supply chain.

On November 12th, the company already cut Q4 revenue guidance to $9 billion, plus or minus $300 million. That was down from its previous expectation of between $10.1 billion and $10.9 billion.

As a result of the year-end market price of Clearwire Corporation stock, Intel will impair the value of its investment, resulting in a non-cash charge to fourth-quarter earnings of approximately $950 million. The company now expects the net gain or loss from equity investments and interest and other to be a loss of between $1.1 billion and $1.2 billion versus a previous expectation of a loss of approximately $50 million.

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