Intel's forecasts do not take into account China's slowdown in the data center; shares tumbling | Money

WASHINGTON, Jan. 25 – Intel Corp Expects Revenues and Earnings Below Analysts' Estimates and Fourth Quarter Forecast Yesterday, Affected by Slowdown in China and Weak Demand for Data Center and Modem Chips .

The company's shares fell 7.7% in long-term trading and also canceled some of the rise in flea shares earlier in the day after better-than-expected quarterly results from companies such as Texas Instruments Inc., Xilinx Inc. and Lam Research Corp.

Its rival competitor, Advanced Micro Devices, which publishes its results next Tuesday, lost 2%, while Nvidia fell 1%.

The sales warnings from Apple Inc., Samsung Electronics Co Ltd and Taiwan Semiconductor Co Ltd earlier this month had highlighted the stagnation of smartphone demand and the cooling of the Chinese economy.

According to information received, Apple is reducing by about 10% the production planned for its three new models of iPhone for the quarter from January to March, which weighs on Intel, which replaced Qualcomm as a supplier Exclusive modem chips for new phones.

Intel expects a turnover of 16 billion USD for the first quarter and an adjusted profit of 87 cents per share.

Analysts on average expected a turnover of 17.35 billion USD and a profit of 1.01 USD per share, according to Refinitiv's IBES data.

"The macroeconomic environment is not looking good at the moment, and if it gets worse, Intel could see its outlook drop further," said Kinngai Chan, badyst at Summit Insights Group.

Intel has turned to the server chips it provides data center operators to grow in recent years. However, the business turnover of this fourth quarter high margin business has been established at 6.07 billion US dollars, compared with 6.35 billion US dollars anticipated, according to the company. financial badysis and data badysis FactSet.

The company said the data center was not meeting expectations "on weaker Chinese demand" and "cloud deceleration".

The company's consumer IT business, which includes sales to PC manufacturers, was US $ 9.82 billion, without FactSet's estimates of US $ 10.01 billion.

Intel reported net profit of $ 5.20 billion, or $ 1.12 per share, for the fourth quarter ended December 29, compared with a loss of $ 687 million, or 15 cents a share, a year earlier.

Net income rose from 17.05 billion US dollars to 18.66 billion US dollars, but the missing estimate is 19.01 billion US dollars.

Excluding special items, the company posted earnings per share of $ 1.28, exceeding expectations of $ 1.22. – Reuters