Intel late Thursday beat Wall Street's earnings target for the first quarter, but sales came up short. The chipmaking giant also guided below estimates for the current quarter. Intel stock fell in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 18 cents a share on sales of $12.72 billion in the March quarter. Analysts polled by FactSet had expected earnings of 14 cents a share on sales of $12.8 billion. In the year-earlier period, Intel lost an adjusted 4 cents a share on sales of $11.72 billion.
For the current quarter, Intel forecast adjusted earnings of 10 cents a share on sales of $13 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of 25 cents a share on sales of $13.61 billion in the second quarter. In the June quarter last year, Intel earned 13 cents a share on sales of $12.95 billion.
"We are confident in our plans to drive sequential growth throughout the year as we accelerate our AI solutions and maintain our relentless focus on execution, operational discipline and shareholder value creation in a dynamic market," Chief Executive Pat Gelsinger said in a news release.
Intel Stock: PC Chips Drive Sales Growth
While overall sales rose 9% year over year in the first quarter, Intel's PC chip sales jumped 31% to $7.5 billion. Intel said it's getting traction with its Intel Core Ultra processors for AI PCs.
But sales of data-center chips rose just 5% to $3 billion in the first quarter. Meanwhile, sales of chips for network and edge devices fell 8% to $1.4 billion. And Intel's foundry business reported a 10% decline in revenue to $4.4 billion.
In after-hours trading on the stock market today, Intel stock sank more than 7% to 32.36. During the regular session Thursday, Intel stock rose 1.8% to close at 35.11.
Other Semiconductor Stocks With Q1 Results
Elsewhere among semiconductor stocks on Thursday, STMicroelectronics missed analyst estimates with its first-quarter results and guided much lower than views for the current quarter. It blamed continued weakness in the automotive and industrial chip markets for the miss.
Meanwhile, Mobileye Global on Thursday delivered mixed Q1 results and provided in-line sales guidance for the full year ahead. Mobileye makes chips and hardware for advanced driver-assistance systems and autonomous vehicles.
Intel stock ranks No. 16 out of 33 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It carries a poor IBD Composite Rating of 38 out of 99.
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