Shares of chipmaker Intel Corporation (NASDAQ:INTC) fell after-hours on Thursday after it released its second-quarter results after the market closed. Here are the highlights that may be of interest to investors.
what you should know
Intel reported revenue of $15.3 billion for the second quarter, down 22% year-over-year. Revenue fell short of Wall Street consensus estimates of $17.9 billion, according to data from Benzinga Pro.
The company reported earnings of 29 cents per share for the quarter, lower than analyst estimates of 69 cents per share.
Intel noted that “continued adverse market conditions” had affected several business units in its quarterly report. The company’s Network and Edge Group and Mobileye posted record quarterly results.
Revenue by segment:
- Client Computing Group: $7.7 billion, -25% year-over-year
- Datacenter and AI Group: $4.6 billion, -16%
- Network and Edge Group: $2.3 billion, +11%
- Accelerated Computing Systems and Graphics Group: $186 million, +5%
- Mobileye: $460 million, +41%
- Intel Foundry Services: $122 million, -54%
“This quarter’s results have not lived up to the standards we set for the company and our shareholders. We must and will do better. The sudden and rapid decline in economic activity was the main factor, but the shortfall also reflects our own execution problems,” said Intel CEO Pat Gelsinger.
What will happen in the future?
Intel forecasts third-quarter revenue to be in the range of $15 billion to $16 billion, versus Wall Street estimates of $18.62 billion, according to data from Benzinga Pro.
The company is targeting earnings of 35 cents a share for the third quarter, versus analyst estimates of 87 cents a share.
The company forecasts revenue of $65 billion to $68 billion for the full year, as well as earnings of $2.30 per share for the full year.
“We are responding to changing business conditions, working closely with our customers,” explained Gelsinger. “We are adapting to the challenges ahead to accelerate our transformation.”
Chief Financial Officer David Zinsner has commented that the company is committed to its business strategy and is committed to a strong and growing dividend.
“We are taking the necessary steps to address the current environment, including accelerating the implementation of our smart capital strategy, reiterating our previous guidance for full-year adjusted free cash flow and bringing gross margins back up to our target range for the fourth quarter,” Zinsner said.
INTC Price Movement
Intel shares fell 9.22% to $36.05 in after-hours trading on Thursday.