Intel's 2019 revenue forecast adjustment has caused the company's stock to drop over 7% instantly.
Big tech companies are starting to reveal earnings during the first quarter of this year. It appears that the industry is experiencing a fairly widespread contraction. Among those that contract their forecasts is Intel, who has softened revenues for this year. A significant revenue forecast cut that has its effects. The company is losing 7% in the stock market right now, which is a serious blow to the company.
Intel cuts its revenue forecast for 2019
During the presentation of the fiscal report for the first quarter, Intel has lowered the revenue figure for 2019. The company had a revenue forecast of $ 71.500 billion. This figure has been corrected and finally it seems that it oscillated in the 69.000 million dollars, as they have indicated. The reasons are not clear, but it is not exactly a good figure for this year.
It is not the only adjustment made. They were forecasting revenue of $ 16.850 billion for the second quarter of this year. The new data offered lowers the expectation to 15.600 billion dollars for this second quarter.
Given this drop in revenue, the earnings per share forecast for the second quarter has also been cut. Intel's calculations were $ 1.01 per share, but in the end it will be 0.89 cents.
As reported from Intel, this adjustment has to do with the drop in demand from China. A demand that falls due to the current trade tensions between China and the United States. This as a collateral effect, has caused Intel to suffer a 7% drop in its shares. Whenever data is corrected to the downside, the shares of companies suffer falls, it is nothing new.
Source: wccftech
