IBM, Intel, eBay: Tech Winners & Losers
NEW YORK (TheStreet) -- Intel (INTC) shares fell sharply, losing 3.11% to $21.66 as the world's largest chipmaker said fourth-quarter revenue would be weaker-than-anticipated.
For the fourth-quarter, the Santa Clara, Calif.-based firm expects revenue of $13.6 billion, plus or minus $500 million. Non-GAAP gross margins are expected to be between 57% and 58%, plus or minus a couple of percentage points. That's slightly below the $13.74 billion in sales analysts polled by Thomson Reuters expect.
Third-quarter numbers beat expectations, but those expectations were lowered just two months ago when Intel cut its outlook amid weak economic conditions. Intel earned 58 cents a share on revenue of $13.5 billion. Analysts polled by Thomson Reuters were looking for 49 cents a share on revenue of $13.23 billion.
IBM (IBM) shares plunged 5.43% to $199.55 after the services giant registered a third quarter revenue miss.
For the third-quarter, IBM earned $3.62 a share, a 10% year-over-year hike, and above analysts' forecast of $3.61 a share. IBM also reported revenue of $24.75 billion, below Wall Street's forecast of $25.36 billion. The Armonk, N.Y.-based company said currency impacted revenue by nearly $1 billion during the quarter. Despite the topline miss, the Dow component reiterated its outlook for non-GAAP 2012 earnings of at least $15.10 a share. On a GAAP basis, IBM took down its earnings forecast to at least $14.29 a share, as a U.K. pension-related charge affected earnings.Shares of eBay (EBAY) were slightly higher, up 0.12% to $48.30 as the online auction company prepares to report third-quarter results after the bell. Analysts surveyed by Thomson Reuters expect eBay to earn 54 cents a share on $3.4 billion in revenue. The San Jose, Calif.-based firm has had a strong run this year, gaining 59.28%, outpacing the broader Nasdaq. Interested in more on eBay? See TheStreet Ratings' report card for this stock. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
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