Intel (NASDAQ:INTC) shocked Wall Street with a downward revision of its revenue outlook, sending shares down almost 4 percent.
Citing a shortage of hard disk drives as the reason for the loss of revenue, Intel expects revenues for Q4 could be in the range of $13.4 billion to $14 billion. The new range is lower than the previous forecast of $14.2 billion to $15.2 billion. This was also worse than Wall Street analysts’ average expectation of $14.65 billion.
Computer manufacturers worldwide have cut down inventories and purchases after floods in Thailand. Intel expects the scarcity of drives to continue into the first quarter of next year.
Here’s how Intel is trading on the news:
Intel Corporation (NASDAQ:INTC): INTC shares recently traded at $24.00, down $1.01, or 4.04%. They have traded in a 52-week range of $19.16 to $25.78. Volume today was 93,803,662 shares versus a 3-month average volume of 63,453,800 shares. The company’s trailing P/E is 10.39, while trailing earnings are $2.31 per share. Get the most recent company news and stock data here >>