Intel Corp.
reported a widely expected drop in quarterly profit on Tuesday afternoon, but
the final results were in line with expectations and pessimistic Wall Street.
Intel reported a drop in quarterly profit, but met expectations despite a drop in PC sales.
The semiconductor giant also left its forecast for full-year gross margins unchanged - suggesting a level of optimism for PC sales to recover some ground after a relatively dismal first quarter. Intel (NASDAQ: INTC) also cut its full year capital spending plan by $ 1 billion from its previous forecast.
"They are preparing for better results in the future," said Doug Freedman, of RBC Capital MarketWatch. "What we are seeing is the ability of Intel to the correct size of its factories rather quickly."
Intel reported its results after the close on Tuesday. The stock rose slightly in after-hours trading following the report, after closing the regular session up 2.5% to $ 21.91.
The company also made no announcement of a new CEO. Now, Paul Otellini retires, his last day set for the annual company meeting of shareholders on May 16.
For the quarter ended March 30, Intel reported net income of $ 2 billion, or 40 cents per share, compared with net income of $ 2.7 million, or 53 cents per share, in the same period last year .
Revenue fell 2% to $ 12.6 billion. The PC business revenue slid 6% to $ 8 billion, partly offset by a 7.5% increase in the data center business, which includes server processors.
Analysts expected earnings of 40 cents a share, on revenue of $ 12.6 billion, according to consensus estimates from FactSet.
For the second quarter, Intel expects revenue of $ 12.9 billion, plus or minus $ 500 million. Analysts were expecting revenue of $ 12.86 billion for the period.
The company reduced its capital expenditure forecast by $ 1 billion to $ 12 billion for the full year, plus or minus $ 500 million. Still hopes to bring in gross margins of about 60% for the year.
Intel reported a drop in quarterly profit, but met expectations despite a drop in PC sales.
The semiconductor giant also left its forecast for full-year gross margins unchanged - suggesting a level of optimism for PC sales to recover some ground after a relatively dismal first quarter. Intel (NASDAQ: INTC) also cut its full year capital spending plan by $ 1 billion from its previous forecast.
"They are preparing for better results in the future," said Doug Freedman, of RBC Capital MarketWatch. "What we are seeing is the ability of Intel to the correct size of its factories rather quickly."
Intel reported its results after the close on Tuesday. The stock rose slightly in after-hours trading following the report, after closing the regular session up 2.5% to $ 21.91.
The company also made no announcement of a new CEO. Now, Paul Otellini retires, his last day set for the annual company meeting of shareholders on May 16.
For the quarter ended March 30, Intel reported net income of $ 2 billion, or 40 cents per share, compared with net income of $ 2.7 million, or 53 cents per share, in the same period last year .
Revenue fell 2% to $ 12.6 billion. The PC business revenue slid 6% to $ 8 billion, partly offset by a 7.5% increase in the data center business, which includes server processors.
Analysts expected earnings of 40 cents a share, on revenue of $ 12.6 billion, according to consensus estimates from FactSet.
For the second quarter, Intel expects revenue of $ 12.9 billion, plus or minus $ 500 million. Analysts were expecting revenue of $ 12.86 billion for the period.
The company reduced its capital expenditure forecast by $ 1 billion to $ 12 billion for the full year, plus or minus $ 500 million. Still hopes to bring in gross margins of about 60% for the year.
.jpg)
.jpg)
