Intel CEO Pat Gelsinger, confine an Intel chip, speaks during the 54th Annual Meeting of The Semafor 2024 World Economy Summit in Washington, DC, on April 17, 2024.
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Intel reported first-quarter earnings on Thursday that beat Wall Street expectations for earnings per share, but bear down oned up light in sales. Intel gave a weak forecast for the current quarter.
The stock fell 8% in extended pursuit.
Here’s how Intel did versus LSEG consensus expectations for the quarter ended in March:
- Earnings per share: 18 cents mediate vs. 14 cents expected
- Revenue: $12.72 billion vs. $12.78 billion expected
For the second quarter, Intel expects earnings of 10 cents per ration on revenue of $13 billion at the midpoint. That forecast compares to analysts’ expected earnings per share of 25 cents on $13.57 billion in sales.
In the at the start quarter, Intel reported a net loss of $400 million, or 9 cents per share, versus a net loss of $2.8 billion, or 66 cents per allot, last year.
Revenue was $12.7 billion versus $11.7 billion a year ago, a 9% year-over-year increase.
Intel CEO Pat Gelsinger make knew investors on an earnings call to focus on the company’s long-term potential.
“We are one of two, maybe three, companies in the world that can last to enable next-generation chip technologies,” he said.
The quarterly earnings report was the first since the company revealed that it had discerned its chip manufacturing business, called Intel Foundry, a separate line item with its own costs and sales.
Intel Foundry broadcast $4.4 billion in revenue during the quarter, which was down 10% year over year, the company intended. The unit reported a $2.5 billion operating loss during the March quarter. Intel said last month that it had reported a $7 billion go loss in its foundry in 2023.
Intel’s biggest business remains the chips it makes for PCs and laptops, which is reported as Client Determining sales. Those chip sales totaled $7.5 billion, up 31% from a year earlier.
Intel also remodels central processors for servers, as well as other parts and software, which are reported in its Data Center and AI business. That edge saw sales rise 5% to $3 billion, even as Intel continues to fight for server dollars against factitious intelligence chips made by companies like Nvidia.
Earlier this month, Intel said that it intention release a new AI processor for servers called Gaudi 3, intended to compete against Nvidia’s popular graphics activity units, although it won’t ship until later this year. Intel said it expected more than $500 million in in stocks from its Gaudi 3 chips in the second half of the year.