Intel shares tumble on downbeat earnings
Shares in chip giant Intel tumbled lower post-earnings after the company reported weaker than expected server CPU revenue and a 47% fall in government sales. Some of the key takeaways from the earnings report include:
- Third-quarter revenue of $18.33 billion - down 4% annually but slightly higher than the $18.24 billion expected.
- Earnings per share in-line with expectations.
- Fourth-quarter guidance of $17.40 billion against estimates of $17.38 billion.
Intel shares were down nearly 10% in after-hours trading, recording a loss of 18% overall this year. Most importantly for investors, however, is the weakness in the company's high growth sector 'server CPU' sales. Revenue dropped 7% annually due to a 47% fall in government sales after enjoying more than a 30% growth in the last few quarters.
Sales to cloud providers and communication providers rose 15% and 4% respectively. Intel's much-anticipated next-generation server CPU line 'Ice Lake Xeon' has been pushed back once again with volume shipments to be expected in the first quarter of 2021.
Did you know that you can speculate on the direction of Intel's share price using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!
How to trade Intel shares with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of Intel's share price you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in Intel, or another instrument, at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, #INTC, Weekly - Data range: May 11, 2014, to October 23, 2020, performed on October 23, 2020, at 6:53 am BST. Please note: Past performance is not a reliable indicator of future results.
Did you know that you can open a free demo trading account to test your trading ideas and theories regarding the price direction of thousands of markets in a virtual trading environment? Open your free account today by clicking on the banner below and receive free access to Premium Analytic tools and more!
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2.Any investment decision is made by each client alone whereas Admiral Markets UK Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3.With a view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
6.Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.