Intel Shares Slip 7% On Weak Outlook

(RTTNews) - Intel Corp. (INTC), the world's biggest chipmaker, Thursday said its profit for the first quarter dropped from a year ago, as revenues were flat. Both profit and revenues trumped Wall Street estimates. However, the company's shares slipped 7 percent on a full-year outlook cut and weak second quarter guidance.

Santa Clara, California-based Intel reported first-quarter profit of $3.97 billion or $0.87 per share, up from $4.45 billion or $0.93 per share last year.

Adjusted earnings for the quarter were $0.89 per share, up from $0.87 per share. On average, 29 analysts polled by Thomson Reuters estimated earnings of $0.87 per share for the quarter.

Intel's revenues for the quarter were $16.06 billion, relatively flat compared to last year's revenue of $16.07 billion. Analysts had a consensus revenue estimate of $16.02 billion for the quarter.

CEO Bob Swan said, "Results for the first quarter were slightly higher than our January expectations. We shipped a strong mix of high-performance products and continued spending discipline while ramping 10nm and managing a challenging NAND pricing environment. Looking ahead, we're taking a more cautious view of the year, although we expect market conditions to improve in the second half." Looking forward to the second quarter, Intel expects revenues of about $15.6 billion and adjusted earnings of around $0.89 per share. Analysts currently estimate earnings of $1.01 per share and revenues of $16.85 billion.

For the full year 2019, Intel now expects revenues of about $69.0 billion and adjusted earnings of about $4.35 per share. Analysts currently estimate earnings of $4.51 per share on revenues $71.05 billion.

Earlier, the company expected revenues of about $71.5 billion and adjusted earnings of about $4.60 per share.

INTC closed Thursday's trading at $57.61, down $1.11 or 1.89%, on the Nasdaq. The stock further slipped $3.94 or 6.84% in the after-hours trading.