Intel (INTC) second quarter 2020 results

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Intel shares fell as much as 9% on Thursday after the company reported better-than-expected second-quarter earnings and said next-gen chips would come out later than expected.Here’s how the company did it:

  • Gains: $ 1.23 per share, adjusted, compared to $ 1.11 per share as expected by analysts, according to Refinitiv.
  • Returned: $ 19.73 billion, compared to $ 18.55 billion as expected by analysts, according to Refinitiv.

As for the forecast, Intel called for $ 1.10 in earnings per share on an adjusted basis and $ 18.2 billion in revenue for its fiscal third quarter. Analysts polled by Refinitiv expected $ 1.14 in adjusted earnings per share on $ 17.90 billion in revenue.

A quarter ago, Intel chose not to give a full year forecast, but on Thursday it announced a new full year forecast. It now sees $ 4.85 in adjusted earnings per share and $ 75 billion in revenue, compared to $ 5 in adjusted earnings per share and $ 73.5 billion in revenue reported in January. The consensus among analysts polled by Refinitiv was $ 4.81 in adjusted earnings per share and revenue of $ 73.86 billion.

The company has announced delays in producing chips with tiny 7-nanometer transistors for higher performance as it seeks to catch up with AMD, which already has 7-nanometer products. Last year, Intel executives said 7-nanometer chips would be launched in 2021 and January. “The main driver is the performance of Intel’s 7nm process, which, based on recent data, is now about 12 months behind the company’s internal target,” the company said in a statement. AMD stock rose 6% after hours of Intel’s announcement.

The struggle to get out of competitive chips comes after Intel encountered supply issues, which in turn affected device makers like Dell and HP.

Intel’s revenue grew 20% year-over-year for the quarter that ended June 27, up from 23% growth a quarter earlier, Intel said.

Intel’s primary business unit, the client computing group that manufactures PC chips, reported $ 9.50 billion in revenue in the quarter, increasing 7% on an annualized basis and exceeding l FactSet consensus estimate of $ 9.10 billion. Industry research group Gartner estimated that second-quarter PC shipments returned to year-over-year growth in the quarter, after declining in the first quarter due to the pandemic.

The Data Center Group, which focuses on chips for cloud providers and server manufacturers, generated $ 7.12 billion in revenue, up 43% and above FactSet consensus of 6.61 billion of dollars.

The non-volatile memory solutions group had revenue of $ 1.66 billion, a growth of 76% and above consensus of $ 1.29 billion.

During the quarter, Intel announced the $ 900 million acquisition of mobility start-up Moovit and the $ 150 million sale of its home gateway platform business to MaxLinear. It also introduced new chips for gaming PCs and laptops.

Leaving aside the after-hours movement, Intel shares have risen around 1% year-to-date, while the S&P 500 is stable.

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

This is the latest news. Please come back for updates.

Correction: This article originally included Intel’s quarterly earnings per share rather than adjusted earnings per share.

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