Intel, Apple, AT&T :Tech Winners & Losers
NEW YORK (TheStreet) -- Intel (INTC) shares were walloped, off 6.1% to $21.30, after the world's largest chipmaker reported fourth-quarter earnings and guidance that disappointed Wall Street.
Santa Clara, Calif.-based Intel earned 48 cents a share on $13.5 billion in revenue during the period ending Dec. 29. Gross margins, an important metric for Intel, came in at 58%, 100 basis points better than the company was expecting. Analysts surveyed by Thomson Reuters were looking for Intel to report earnings of 45 cents a share on $13.53 billion in revenue. A lower-than-expected tax rate aided the earnings per share.
Intel's first quarter and full year 2013 guidance disappointed Wall Street, coming in lower than consensus. For the first quarter, Intel expects to generate revenue of $12.7 billion, plus or minus $500 million. Gross margin is expected to be 58%, plus or minus a few hundred basis points. Thomson Reuters surveyed analysts, who expect $12.9 billion in sales and earnings of 39 cents a share.
For the full year, Intel expects a low single-digit percentage increase in revenue. Gross margins are expected to be around 60%.
There's concern that demand for the 9.7-inch iPad is being cannibalized by the smaller 7.9-inch iPad mini, which many on Wall Street think has lower gross margins than its big brother.
Apple reports first-quarter earnings after the close of trading on Wed., Jan. 23. Analysts polled by Thomson Reuters expect the Cupertino, Calif.-based tech giant to earn $13.41 a share on $54.7 billion in revenue.
AT&T (T) shares gained 0.39% to $33.33, despite the company recording a $10 billion charge to its pension and benefit plans.
"We expect to record a non-cash, pre-tax charge of approximately $10 billion related to actuarial gains and losses on pension and postemployment benefit plans," AT&T said in an 8-K filing.
In the filing, AT&T also noted that it sold 10.2 million smartphones during the fourth quarter. As a result of the high subsidies, the company expects "near-term pressure on operating income, margins, and earnings per share in the fourth quarter of 2012."