Intel (INTC) & Snap Inc stocks fall amid Q3 results, supply chain woes

Highlights 

  • The revenue of Intel Corporation (NASDAQ: INTC) rose 5% YoY in Q3, FY21
  • Intel expects its revenue to be US$18.3 billion in Q4, FY21
  • The revenue of Snap Inc (NYSE: SNAP) jumped 57% YoY in Q3, FY21

The stocks of Intel Corporation (NASDAQ: INTC) and Snap Inc (NYSE: SNAP) have gained attention from the investors, following their quarterly earnings release on October 21, after the bell. The former was down around 10% in pre-market trading on October 21, while the latter plummeted more than 20%.

Meanwhile, the INTC stocks were priced at US$56.00 as its closing price on Thursday, up 1.14% from its previous closing price, while the shares of SNAP closed the market at US$75.11, down by 0.71% from its closing price of October 20.

Here we explore the earnings details and stock performances of the two companies.

Also read: Five hot small-cap stocks that gave over 390% return YTD

Intel Corporation (NASDAQ: INTC)

Intel is a technology company based in Santa Clara, California. It is one of the leading semiconductor chip manufacturers in the world, that develops various microprocessors for computers.

On a GAAP basis, the company's revenue was up 5% YoY to US$19.2 billion in Q3, FY21, while on a non-GAAP basis, the firm's revenue was US$18.1 billion, representing an increase of 5% from the previous year's third quarter.

On an adjusted basis, the company's earnings were US$1.71 per diluted share, as compared to US$1.08 per diluted share in the third quarter of fiscal 2020.

Meanwhile, the company has topped the EPS estimate of the Wall Street analysts but missed revenue forecast. The analysts had expected the company's adjusted revenue to be US$18.24 billion and its diluted EPS to be US$1.11 apiece, Refinitiv data showed.

Also read: Dow Inc. (DOW) total revenue jumps 53% in third quarter

On a non-GAAP basis, Intel expects its revenue to be US$18.3 billion in Q4, FY21, down from US$18.9 billion in the same quarter of the previous year, while projecting its full fiscal revenue to be US$73.5 billion.

However, for fiscal 2022, the company expects its revenue to be about US$74 billion, up from the analysts' forecast of US$73 billion.

The firm’s market cap is US$227.19 billion, a P/E Ratio of 12.44, and a forward P/E ratio for one year of 11.56. Its EPS is US$4.50.

Its 52-week highest and lowest stock prices were US$68.49 and US$43.61, respectively. Its trading volume was 38,390,860 on October 21.

Intel CEO Pat Gelsinger said that he expects the shortage of chips to extend till 2023, and it may also hamper the profit of the company.

Also read: American Airlines Group (AAL) posts third-quarter profit of US$169 million

Image Description: Earnings Alert: Intel Corporation (INTC) and Snap Inc. (SNAP)

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Snap Inc (NYSE: SNAP)

Snap Inc is a camera and social media company based in Santa Monica, California. It provides a camera application for its users to communicate through images and videos.

The daily active users of the firm surged 23% YoY to 306 million in the third quarter of fiscal 2021. Its net revenue was US$1.06 billion, representing an increase of 57% YoY in Q3, FY21.

Snap reported an operating loss of US$180.82 million, as compared to US$167.86 million in the same quarter a year ago. Its net loss came in at US$71.95 million, or a loss of US$0.05 per diluted share, an improvement from the loss of US$199.85 million, or a loss of US$0.14 per diluted share in the third quarter of fiscal 2020.

The company now expects its revenue to be between US$1.16 billion and US$1.20 billion in the fourth quarter of fiscal 2021.

Also read: IBM stock dives 9% after lackluster third-quarter results

The market cap of the company is US$118.75 billion, and the forward one-year P/E is -192.59. Its EPS is US$-0.51.

The stock saw the highest price of US$83.34 and the lowest price of US$34.52 in the last 52 weeks. Its share volume on October 21 was 44,450,940.

Meanwhile, the company said that the decrease in the advertisement is one of the main concerns of the company in the coming quarters. The majority of its revenue comes from the advertisements on its app, which is hampered due to the bottleneck supply constraints globally and the labor shortages. In addition, Apple's new policy that prevented the advertisers from tracking iPhone users without their consent has also raised concerns of Snap, the company added.

Also read: SAP SE (SAP) raises guidance, Union Pacific (UNP) posts higher profits

Bottom line:

Both the stocks have witnessed significant growth in recent quarters, mainly due to innovations in their respective businesses. Experts have also provided bullish remarks for the companies due to the increasing demand in the technology and communication sector. However, an investor should closely evaluate the stocks and the recent volatility of the market before investing.

The stock value of INTC increased by 11.48% YTD, while the SNAP stocks soared 52.55% YTD.

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