Intel (INTC) beat Wall Street’s first-quarter profit target late Thursday, but revenue lagged. The chip maker also provided the estimates below for the current quarter. Intel shares fell in extended trading.
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The Santa Clara, California-based company earned an adjusted 18 cents per share on revenue of $12.72 billion in the March quarter. Analysts polled by FactSet expected earnings of 14 cents per share on revenue of $12.8 billion. In the year-ago period, Intel lost an adjusted 4 cents per share on revenue of $11.72 billion.
For the current quarter, Intel expects adjusted earnings of 10 cents per share on revenue of $13 billion. That is based on the center of the guidance. Wall Street expected a profit of 25 cents per share on revenue of $13.61 billion in the second quarter. In the June quarter last year, Intel earned 13 cents per share on revenue 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,” CEO Pat Gelsinger said in a press release.
Intel Stock: PC Chips Drive Sales Growth
While total revenue rose 9% year over year in the first quarter, sales of Intel’s PC chips rose 31% to $7.5 billion. Intel said it is gaining traction with its Intel Core Ultra processors for AI PCs.
But data center chip sales rose just 5% to $3 billion in the first quarter. Meanwhile, sales of chips for networking 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, shares of Intel fell more than 7% to 32.36. During the regular session Thursday, shares of Intel rose 1.8% to 35.11.
Other semiconductor stocks with first-quarter results
Elsewhere on semiconductor stocks Thursday STMicroelectronics (STM) missed analyst estimates with its first-quarter results and issued well below expectations for the current quarter. It blamed continued weakness in the automotive and industrial chip markets for the miss.
In the meantime, Mobileye Global (MBLY) delivered mixed first-quarter results on Thursday and provided in-line sales guidance for the year ahead. Mobileye makes chips and hardware for advanced driver assistance systems and autonomous vehicles.
According to IBD Stock Checkup, Intel stock ranks No. 16 out of 33 stocks in IBD’s semiconductor industry group. It has a poor IBD Composite Rating of 38 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer tech, software and semiconductor stocks.
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