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Great Earnings Report Not Great Enough for Intel Investors.(Originated from San Jose Mercury News, Calif.)
Knight Ridder/Tribune Business News, January, 1997 by Rae-Dupree, Janet
SAN JOSE, Calif.--Jan. 16--Intel Corp.'s record earnings report on Tuesday didn't thrill everyone. On Wednesday, investors hammered the company's stock down $5.13.
Nervous investors reacted to a warning the company issued in its report that its final quarter last year was so magnificent that it couldn't possibly do a repeat performance. Instead, Intel said its revenues this quarter probably will be about what they were last quarter -- a whopping $6.4 billion -- while its profit margins are likely to slip a bit.
"The old adage is that investors buy on the rumor and sell on the news," said Bruce Raabe, senior equities analyst at Collins & Co. "The market has had two phenomenal years back to back and so people are a little skittish to begin...
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