Intel Corporation reported its first quarter earnings after the bell, beating estimates on both top and bottom lines. However, a disappointing outlook led to shares plummeting more than 6% in after-hours trading. The company expects second-quarter revenue of $11.2-$12.4 billion, below Wall Street’s expectations of $12.8 billion.
Intel CFO David Zinsner attributed the cautious approach to the “current macro environment creating elevated uncertainty across the industry.” Shares have declined by 38% over the past year. For the first quarter, Intel saw adjusted earnings per share (EPS) of $0.13 on revenue of $12.7 billion, exceeding expectations.
Client computing revenue was stronger than expected at $7.6 billion, while data center and AI segment revenue came in higher than anticipated at $4.1 billion. However, the company’s foundry business faced a tougher outlook due to tariffs on laptops and systems built in China.
The new CEO, Lip-Bu Tan, emphasized the need for improvement and innovation, acknowledging the challenges ahead. Wall Street is now waiting for Intel’s plans regarding its third-party foundry business, with analysts predicting varying outcomes.
Source: https://finance.yahoo.com/news/intel-beats-on-q1-expectations-but-poor-q2-forecast-sends-stock-sliding-192248720.html