Intel falls even as Q2 guidance suggests PC downturn near end
Justin Sullivan
Intel (NASDAQ:INTC) shares fell more than 2% in extended-hours trading even as the semiconductor giant posted first-quarter results that beat expectations and offered second-quarter guidance that suggested the downturn in PCs was near an end.
For the period ending March 31, Intel lost an adjusted 4 cents per share on $11.72B in revenue, including $458M from Mobileye (MBLY), which it still majority owns after last year's initial public offering.
Included in the $11.72B was $5.8B in sales from its Client Computing Group and $3.7B from its data center and AI unit. Intel's nascent foundry business generated $118M, down 24% year-over-year.
Gross margins fell 16.2 percentage points from the year-ago period to 34.2% on a non-adjusted basis and 38.4% on an adjusted basis.
A consensus of analysts estimated that Intel (INTC) would report a first-quarter loss of 14 cents per share on $11.13B in revenue.
Looking to the second-quarter, Intel (INTC) expects revenue to be between $11.5B and $12.5B, with analysts forecasting $11.75B in sales. Adjusted gross margins are expected to tick down to 37.5%, while the company forecast an adjusted loss of 4 cents per share and 62 cents on a GAAP basis.
The company will hold a conference call at 5 p.m. EST to discuss its results.
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