Intel Shares Fall 30% After Fourth-Quarter Outlook Misses Forecasts

Intel shares fell about 30% Friday to around $63.56 after the chipmaker issued a fourth-quarter outlook below forecasts, putting the stock on track for its steepest one-day decline since 1974. The drop followed Intel's third-quarter earnings release and put the next quarter's projections in focus.

Intel expects adjusted earnings of 25 cents per share and revenue of $15 billion to $16 billion for the fourth quarter. Forecasts called for 43 cents per share and $17.1 billion in revenue. The earnings projection is 18 cents below the per-share forecast, while Intel's revenue range is $1.1 billion to $2.1 billion below the revenue estimate.

The guidance covers the quarter after the period in the third-quarter results. Adjusted earnings are expressed per share, while revenue gives a dollar range for the quarter as a whole. Both measures in Intel's outlook are below their comparison forecasts, with even the high end of the revenue range falling short.

The 1974 comparison is for the size of a one-day decline. With Intel shares on track to reach that mark, it describes a potential session record rather than a confirmed one.