INTEL MISSES ON REVENUE AND GIVES LIGHT GUIDANCE, STOCK TECHNICALS BREAKDOWN
In the Premarket trading session on Friday, Intel’s stock was trading at 46.50- lower by 6.55% as compared to its previous close.
The company reported fourth-quarter earnings after the market closed on Thursday. Stocks of Intel plunged fell after the company reported lower-than-expected revenue for the fiscal fourth quarter and weak guidance.
The company generated EPS of $1.28 for the fourth quarter. The EPS was above the consensus estimates of $1.22. Intel brought in $18.66 billion in revenue for the fourth quarter. The revenue was below the market expectation of $19.01 billion. The company pointed to weaker demand in China as a key reason for its revenue weakness.
With respect to guidance, the company said it expects to post EPS (excluding certain items) of 87 cents on around $16 billion in revenue in the first quarter of 2019. The markets had been looking for EPS (excluding certain items) of $1.01 on $17.35 billion in revenue.
On the technical front, the current price is below the MA5 and the MA20. The current price is below the middle line of the Bollinger Band, and is heading downwards. The stock is expected to trade lower today.
TRADE SUGGESTION- LIMIT SELL AT 46.70 TAKE PROFIT AT 45.70 STOP LOSS AT 47.20