Intel shares fell 4% in extended trading on Thursday after the chipmaker issued a lower-than-expected forecast for its fiscal second quarter.
Here’s how the company did:
Earnings: 87 cents per share, adjusted, vs. 81 cents as expected by analysts, according to Refinitiv.
Revenue: $18.35 billion, vs. $18.31 billion as expected by analysts, according to Refinitiv.
Intel’s revenue decreased by 7% year over year in the quarter that ended on April 2, according to a statement. Intel’s gross margin narrowed to 50.4% from 55.2%.
Intel’s Client Computing Group, which includes PC chips, produced $9.29 billion in revenue, down 13% and below the $9.42 billion consensus estimate among analysts surveyed by Refinitiv. Research firm Gartner had estimated that PC shipments fell 6.8% during the quarter, and on Tuesday Microsoft said it saw strength in the business PC market, boosting Windows license sales from device makers.
- Sales of Intel chips for desktop PCs and notebooks declined, with softer demand among consumers and in education and Apple shifting to its own PC processors.
- Shares of the company fell 5% in after-market trading.
- Rising inflation, resurgence of COVID-19 in China and uncertainties around the war in Ukraine have shifted consumer spending away from gadgets, hurting Intel, which saw more than half of its revenue last year coming from the segment selling processors for PCs.
- Analysts say the PC market is coming off of searing rates of growth over the last two years as remote working and learning triggered high demand during the pandemic.
- As lockdowns in China continue, supply-chain bottlenecks are likely to hurt Intel’s customers, in turn affecting the chipmaker’s business.
- The company expects current-quarter adjusted profit of 70 cents per share on revenue of about $18 billion, below analysts’ average estimate of 83 cents per share on $18.38 billion, according to IBES data from Refinitiv.
- Intel is also facing increasing competition in the data center space, as peers Nvidia Corp (NVDA.O) and Advanced Micro Devices (AMD.O) are ramping up their chip production to cater to the booming market amid growth in the metaverse, AI applications and cloud computing.
Intel (NASDAQ: INTC) April weekly call option implied volatility is at 154, May is at 47; compared to its 52-week range of 21 to 48 into expected release of quarter results today after the bell. Call put ratio 1.1 calls to 1 put as shares rally 3%.
Biltmore Capital Advisors LLC lowered its stake in shares of Intel Co. (NASDAQ:INTC – Get Rating) by 17.6% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 5,093 shares of the chip maker’s stock after selling 1,085 shares during the quarter. Biltmore Capital Advisors LLC’s holdings in Intel were worth $262,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors also recently bought and sold shares of INTC. OLD Mission Capital LLC purchased a new stake in shares of Intel during the 3rd quarter worth about $727,000. Ironwood Wealth Management LLC. grew its holdings in shares of Intel by 2.8% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 8,511 shares of the chip maker’s stock worth $478,000 after purchasing an additional 232 shares during the period. Morgan Stanley grew its holdings in shares of Intel by 5.3% during the 2nd quarter. Morgan Stanley now owns 27,235,326 shares of the chip maker’s stock worth $1,528,991,000 after purchasing an additional 1,378,548 shares during the period. Keudell Morrison Wealth Management grew its holdings in shares of Intel by 4.1% during the 3rd quarter. Keudell Morrison Wealth Management now owns 25,823 shares of the chip maker’s stock worth $1,376,000 after purchasing an additional 1,007 shares during the period. Finally, Segall Bryant & Hamill LLC grew its holdings in shares of Intel by 5.2% during the 3rd quarter. Segall Bryant & Hamill LLC now owns 134,555 shares of the chip maker’s stock worth $7,174,000 after purchasing an additional 6,662 shares during the period. 61.73% of the stock is owned by institutional investors.
Intel : 2022 Q1 Earnings Release
2200 Mission College Blvd. Santa Clara, CA 95054-1549
Intel Reports First-Quarter 2022 Financial Results
▪ First-quarter GAAP revenue of $18.4 billion, down 7% year over year (YoY), and non-GAAP revenue of $18.4 billion, down 1% YoY, exceeded January guidance. Achieved record quarterly revenue in Intel’s Network and Edge Group, Mobileye and Intel Foundry Services businesses.
▪ First-quarter GAAP earnings-per-share (EPS) was $1.98; non-GAAP EPS was $0.87, which exceeded January guidance by $0.07.Exceeded January guidance for EPS and gross margin.
▪ Reaffirming full-year 2022 revenue guidance.
SANTA CLARA, Calif., April 28, 2022 — Intel Corporation today reported first-quarter 2022 financial results.