Chipmaker Intel Corporation INTC is seeing shares drop in the after-hours session Thursday after reporting second-quarter results after the market close. Here are the key highlights for investors.
What Happened: Intel reported second-quarter revenue of $15.3 billion, down 22% year-over-year. Revenue missed a Street consensus of $17.9 billion, according to data from Benzinga Pro.
The company reported earnings per share of 29 cents in the quarter, missing a Street estimate of 69 cents per share.
Intel cited “continued adverse market conditions” impacting several business units in its quarterly report. The company’s Network and Edge Group and Mobileye saw record quarterly results.
Revenue by segment:
- Client Computing Group: $7.7 billion, -25% yoy
- 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 were below the standards we have set for the company and our shareholders. We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues,” Intel CEO Pat Gelsinger said.
Related Link: Why The CHIPS Act Is Good News For Intel
What’s Next: Intel is guiding for third-quarter revenue coming in a range of $15 billion to $16 billion versus a Street estimate of $18.62 billion, according to Benzinga Pro.
The company is guiding for third-quarter earnings per share of 35 cents versus a Street estimate of 87 cents per share.
Intel sees full-year revenue in a range of $65 billion to $68 billion and full-year earnings per share of $2.30.
“We are being responsive to changing business conditions, working closely with our customers,” Gelsinger said. “We are embracing this challenging environment to accelerate our transformation.”
Chief Financial Officer David Zinsner said the company is committed to its business strategy and having a strong and growing dividend.
“We are taking necessary actions to manage through the current environment, including accelerating the deployment of our smart capital strategy, reiterating our prior full-year adjusted free cash flow guidance and returning gross margins to our target range by the fourth quarter,” Zinsner said.
INTC Price Action: Intel shares are down 9.22% to $36.05 in after-hours trading Thursday.
Photo via Shutterstock.
Image and article originally from www.benzinga.com. Read the original article here.