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Intel beats but offers disappointing guidance


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Intel CEO Pat Gelsinger, center, Sens. Ron Wyden, D-Ore., right, and Todd Young, R-Ind., arrive for the Senate Commerce, Science, and Transportation hearing titled Developing Next Generation Technology for Innovation, in Russell Senate Office Building on March 23, 2022.
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Intel shares fell as much as 6% in extended trading on Thursday after the chipmaker issued a lower-than-expected forecast for its fiscal second quarter.

Here’s how the company did:

Earnings: 87 cents per share, adjusted, vs. 81 cents as expected by analysts, according to Refinitiv.Revenue: $18.35 billion, vs. $18.31 billion as expected by analysts, according to Refinitiv.

Intel’s revenue decreased by 7% year over year in the quarter that ended on April 2, according to a statement.

Intel’s Client Computing Group, which includes PC chips, produced $9.29 billion in revenue, down 13% and below the $9.42 billion consensus estimate among analysts surveyed by Refinitiv. Research firm Gartner had estimated that PC shipments fell 6.8% during the quarter, and on Tuesday Microsoft said it saw strength in the business PC market, boosting Windows license sales from device makers.

In the quarter Intel said a server chip codenamed Granite Rapids will come out in 2024 instead of 2023. The company said it would buy foundry company Tower Semiconductor and announced plans for chip factories in Germany and Ohio. Former Micron finance chief David Zinsner became Intel’s finance chief, replacing George Davis, who held the position for three years.

With respect to guidance, Intel called for adjusted second quarter-earnings per share of 70 cents and $18.0 billion in revenue. Analysts polled by Refinitiv had expected 83 cents in adjusted earnings per share on $18.38 billion in revenue.

Intel shares have fallen about 9% since the start of 2021, while the S&P 500 is down about 10% over the same period.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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