- Intel's quarterly earnings report after the bell is the company's first since naming Bob Swan as permanent CEO.
- Intel said it expects full year revenue of $69.0 billion compared to analyst estimates of $71.05 billion.
- The company reported revenue for the quarter of $16.06 billion vs. $16.02 billion as expected by analysts, according to Refinitiv.
Intel stock fell more than 7% in extended trading after providing a weaker-than-expected revenue forecast for the year. The company's first-quarter earnings topped analysts' estimates.
Here are the key numbers:
- Earnings: $0.89 cents vs. $0.87 per share as expected by analysts, excluding certain items, according to Refinitiv.
- Revenue: $16.06 billion vs. $16.02 billion as expected by analysts, according to Refinitiv.
Intel said it expects full year revenue of $69.0 billion compared to estimates of $71.05 billion. That would be a decline from $70.8 billion in 2018 and mark the company's first revenue drop since 2015.
The report is the first for CEO Bob Swan since he was named permanent CEO in January. Swan, who became Intel's finance chief in 2016, took the top job on an interim basis last year after Brian Krzanich was ousted for what the company called a "consensual relationship" with an employee.
Intel said last week that it's exiting the 5G smartphone market after determining there was "no clear path to profitability," further ceding the mobile phone chip business to Qualcomm. The company also said it's assessing its future in so-called internet of things devices, or the growing number of gadgets that are connected to the web.
On Thursday's conference call, Intel told analysts that it's "conducting a strategic assessment of 5G modems for the PC and IoT sectors."
That leaves the company increasingly reliant on the data center business, where Intel has dominant market share in providing chips for servers. But revenue for Intel's data-centric businesses fell 5% year over year in the first quarter, the company said. Its Data Center Group reported revenue of $4.9 billion for the quarter, down from $5.2 billion during the same quarter last year.
The group's enterprise and government revenue saw the steepest decline for the quarter at 21%. The communications service provider segment declined 4%, while Intel's cloud segment grew 5%.
An additional problem for Intel is the company hasn't been making enough central processing units (CPUs) to meet PC demand. It's PC-centric business posted a 4% increase, however, based in part on strength in gaming and high performance products.
For Intel, it all amounts to a lagging stock price. The shares are up 12% in the past year, while the S&P 500 technology group has gained almost double that amount.
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