Intel Corp. reported on Thursday afternoon that profits and sales in the first quarter were well above estimates, but forecast that income in the second quarter would be weaker than expected, sending down shares in after hours sessions.
Intel Corp posted a net income of $5.66 billion in the first three months of 2020, or $1.31 per share, compared to $3.97 billion, or 87 cents per share, in the year ago period. Revised profits were pegged at $1.45 per share, compared to a share of 89 cents in the year ago month.
Analysts surveyed by Refinitiv had predicted adjusted earnings of $1.28 per share and revenues of $18.70 billion. However, it is not easy to compare these findings against the predictions of other experts, considering that the pandemic has affected countries around the globe during the period.
Sales increased 23 percent on an annual basis in the period ended March 28 this year, up from the company's estimate of $19.00 billion, according to a market report.
On Thursday afternoon, the US microchip maker posted its first quarter sales of $19.83 billion (an increase of 24 percent for the current year), GAAP earnings per share of $1.31 and non-GAAP earnings per share of $1.45. Those figures surpassed consensus analyst projections of $18.67 billion, $1.23 and $1.28, respectively.
For the second quarter, Intel Corp is guiding for sales of $18.5 billion (up 12 percent), GAAP earnins per share of $1.04 and non-GAAP EPS of $1.10. The revenue guidance has now broken past the $17.79 billion consensus mark, but the EPS guidance is respectively under estimates of $1.12 and $1.20.
Intel Corp. revealed what was widely predicted Thursday - a spike in server and PC chips as more customers operate at home during the health crisis - but could not ease the concerns of investors for the remainder of 2020, leading to decreasing prices across the chip market.
The global health crisis has swept through the electronics industry, crippling activities as shutdown orders reached nations in the chip distribution chain including Malaysia where chip services were finally allowed to restart but endured shortages.
Intel Chief Executive Bob Swan has said that the organization had to "temporarily delay" some ventures at some locations due to local government constraints, but said Intel's facilities were mostly in a position to meet demand.
Since the pandemic started to sweep around the world, Intel has halted stock repurchases and released $8 billion in debt, but had not rescinded budgetary guidance like many other major corporations until saying on Thursday that it would stop issuing it.
