Intel (INTC) Stock Off 5% After Lower Sales Forecast
Shares of the Intel Corporation (INTC) closed down -1.36 or -5.39 percent to $23.87 per share on Friday, after the company announced it expects sales to be flat in 2014, versus analyst estimates of a +1.4 percent increase over 2013 sales. The lower forecast means this will be the third year in a row that Intel fails to meet analyst expectations.
The announcement of flat 2014 sales was made at Intelâ s annual meeting with industry analysts on Thursday afternoon. Intel stock started out higher during the companyâ s analyst day, rising +2.7% initially to a six month high, until the company announced its guidance for 2014, which stunned participants and sent the stock sharply lower.
Santa Clara, California based Intel Corporation is the worldâ s largest maker of semiconductor chips by revenue. Founded in 1968, the company owns a slew of important patents for microprocessors and processors used in most personal computers. Intel invented the worldâ s first commercial microprocessor in 1971. The companyâ s annual meeting with analysts began well, with the Intel executives outlining the companyâ s plans to quadruple table CPU shipments in 2014, build up its foundry business and aggressively pursue the mobile market. Nevertheless, towards the end of the presentation, Intel revealed that 2014 sales would be flat, significantly lower than the +2.1 percent increase that analysts expected. Analysts after the meeting were mixed in their opinions on Intel stock, Jeffries analyst Mark Lipacis raised his target price by $2 per share to $32 from $30. He stated that, â
Published on Nov 25, 2013
By Jay Hawk