Intel Corp. shares plunged in the extended session Thursday after the chip maker missed Wall Street estimates by a wide margin and cut its outlook for the year, acknowledging a slowing market as well as execution issues. For the third quarter, Intel
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forecast earnings of 35 cents a share on revenue of about $15 billion to $16 billion and adjusted gross margins of 46.5%. Analysts surveyed by FactSet had estimated adjusted third-quarter earnings of 87 cents a share on revenue of $18.72 billion.
As many expected, Intel cut its outlook for the year, but by more than many expected. Intel expects adjusted earnings of $2.30 a share on revenue of about $65 billion to $68 billion with gross margins of 49%. Earlier in the year, Intel Chief Financial Officer David Zinsner had said he was comfortable with a gross margin forecast between 51% and 53%, and last year Intel Chief Executive Pat Gelsinger had promised margins would remain “comfortably above 50%.” For the year, Wall Street estimates earnings of $3.34 a share on revenue of $74.46 billion. Last quarter, Intel had doubled down on an optimistic outlook for the year of about $3.60 a share on revenue of about $76 billion with gross margins of 52%, which had placed an enorm …