Intel (INTC) shares were down about 5% in premarket trading Wednesday after the Mountain View, Calif.-based tech giant said after the closing bell Tuesday that fourth-quarter revenue may lag behind analyst expectations. Intel also said it now expects to see quarterly sales of about $15.7 billion vs. consensus forecasts of $16.1 billion. Meanwhile, third-quarter sales of $15.78 billion clocked in slightly above analyst forecasts of $15.58 billion, while earnings also surpassed expectations; earnings per share of $0.80 topped consensus estimates of $0.73.
Intel's CEO Brian Krzanich noted that the company has made meaningful progress in developing new technologies that could boost future top-line growth, including the much-hyped "Internet of Things," which connects industrial devices via sensors to proprietary software to optimize machine efficiency. "We're executing well, and these results show Intel's continuing transformation to a company that powers the cloud and billions of smart, connected devices," he said in a statement.
And shares of Yahoo (YHOO) were climbing more than 1% before the opening bell after the company surprised analysts with better-than-expected earnings for its third quarter, posting earnings of $163 million, more than twice the $76 million the Web giant made in the third quarter of last year. Earnings per share of $0.20 also topped consensus forecasts by about 39%. Yahoo's CFO Ken Goldman also noted that the company brought in a substantial cash flow, up about $900 million from a year ago, largely due to cost cutting and reduced capital expenditures.
And as earnings season heats up, shares of Reynolds American (RAI) , a member of Real Money's Vice Squad watch list, were down before the opening bell after the Winston Salem, N.C.-based cigarette giant booked quarterly earnings per share of $0.61, four cents below consensus forecasts. Sales of $3.21 billion also fell short of analyst expectations by about $100 million. Reynolds CEO Susan Cameron noted the company did see strong growth among its Newport's and Natural American Spirit's brands, whose sales were partially buoyed by higher pricing.
Overall, markets were up slightly, with the S&P 500 and Dow Jones industrials each up about 0.2% before the opening bell, thanks to a more than 1% climb in oil prices to $51.29 a barrel. Shares of oil and gas companies were climbing, including a roughly 2% rise in shares of Chesapeake Energy (CHK) , a member of Real Money's Stressed Out watch list.