Intel stock drops as outlook barely erases Wall Street expectations after beat – .

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Intel stock drops as outlook barely erases Wall Street expectations after beat – .



Shares of Intel Corp. weakened in the extended session Thursday after the chipmaker beat expectations, but its outlook barely beat Wall Street analysts’ average forecast.

Intel INTC,
-0,48 %
stocks were down more than 3% for the last time in the extended session, following an initial 3% rise in after-hours trading. Shares closed down 0.5% in the regular session at $ 55.96.

Intel reported second-quarter net income of $ 5.06 billion, or $ 1.24 per share, from $ 5.11 billion, or $ 1.19 per share, a year ago. After adjusting for acquisition-related expenses and other items, Intel reported earnings of $ 1.28 per share, down from $ 1.23 per share a year ago.

Revenue fell to $ 19.63 billion from $ 19.73 billion in the last year’s quarter, for a fourth consecutive quarter of year-over-year revenue decline, but topped its own estimates and those of analysts. Excluding the company’s memory activity, revenue was $ 18.5 billion. Analysts had estimated adjusted earnings of $ 1.07 per share on revenue of $ 17.81 billion, while Intel had forecast adjusted earnings of $ 1.05 per share on revenue of $ 18.9 billion. dollars, or $ 17.8 billion when removing the memory activity it was giving up.

“Our second quarter results show that our momentum is building, our execution is improving and customers continue to choose us for leading products,” Intel CEO Pat Gelsinger said in a statement.

For the third quarter, Intel expects revenue of approximately $ 19.1 billion, or $ 18.2 billion by cutting memory business, and GAAP earnings of $ 1.08 per share and earnings. non-GAAP of $ 1.10 per share. Analysts on average expected adjusted third-quarter earnings of $ 1.09 per share on revenue of $ 18.11 billion.

Lis: Chip crunch continues, but one sector could be in reserve

Revenue for Intel’s data center group fell 9% to $ 6.5 billion, while analysts polled by FactSet expected $ 5.84 billion.

Intel’s largest segment – client computing, the traditional PC group – rose 6% to $ 10.1 billion, with analysts predicting $ 10.03 billion.

Intel said revenue from non-volatile memory solutions fell 34% to $ 1.1 billion, while Wall Street expected $ 690.8 million and revenue from the Internet of Things or IoT rose 47% to $ 984 million, from $ 901.5 million expected. Mobileye’s revenue jumped 124% to $ 327 million, but Street expected $ 361.4 million.

Lis: Why chip inventories fall despite semiconductor shortage and strong early earnings

In the past 12 months, Intel stock has fallen 8%. Over the same period, the Dow Jones Industrial Average DJIA,
+0,07%
– which counts Intel as a component – gained 29%, the S&P 500 SPX index,
+0.20%
climbed 33%, the highly technical Nasdaq Composite Index COMP,
+0,36%
rose 37%, and the PHLX Semiconductor SOX index,
-0,89 %
jumped 55%.

Mercredi, Texas Instruments Inc. TXN,
-5,32 %
kicked off the earnings season for US chipmakers, beating Wall Street estimates, but confusing some analysts with cautious forecasts amid a global semiconductor shortage.

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