Intel drops 7% on weak outlook
Intel's quarterly earnings report after the bell is the company's first since naming Bob Swan as permanent CEO.
Intel reported earnings per share of $0.89 cents vs. $0.87 per share as expected by analysts, excluding certain items, according to Refinitiv.
The company reported revenue of $16.06 billion vs. $16.02 billion as expected by analysts, according to Refinitiv.
Intel INTC stock fell 7% after reporting first-quarter earnings after the close of trading on Thursday. Executives will discuss the results with analysts at 5 p.m. Eastern time.
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.
The company reported weak guidance compared to analyst estimates for the full year 2019. Intel said it expects full year revenue of $69.0 billion compared to estimates of $71.05 billion. That would fall short of the company's 2018 revenue, when the company recorded sales of $70.8 billion.
The report will be 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 INTC 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 QCOM .
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.
An additional problem for Intel is the company hasn't been making enough central processing units (CPUs) to meet PC demand .
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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