Intel (INTC) Cuts Q3 Sales Outlook; Cites Lower Inventory Demand in Supply Chain

September 7, 2012 8:02 AM EDT Send to a Friend
Get Alerts INTC Hot Sheet
Trade INTC Now!
Join SI Premium – FREE
Intel Corp. (Nasdaq: INTC) reports that third-quarter revenue is expected to be below the company’s previous outlook as a result of weaker than expected demand in a challenging macroeconomic environment. The company now expects third-quarter revenue to be $13.2 billion, plus or minus $300 million, compared to the previous expectation of $13.8 billion to $14.8 billion.

The Street is at $13.62 billion.

Relative to the prior forecast, the company is seeing customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory; softness in the enterprise PC market segment; and slowing emerging market demand. The data center business is meeting expectations.

The company’s expectation for third-quarter gross margin is now 62 percent, plus or minus one percentage point; lower than the previous expectation of 63 percent, plus or minus a couple of percentage points.

Expectations for R&D and MG&A spending and depreciation in the third quarter remain unchanged.

Full-year capital spending is expected to be below the low-end of the company’s previous outlook of $12.1 billion to 12.9 billion, as the company accelerates the re-use of existing equipment to the 14nm node.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Corporate News, Guidance, Hot Corp. News, Hot Guidance, Hot List

Add Your Comment