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- Intel topped Q2 revenue targets and raised its full year earnings and revenue outlook.
- But Wall Street focused on Intel's data center business, which came in slightly shy of estimates.
- Shares of Intel were down as much as 5.5% in after hours trading on Thursday.
Intel raised its financial forecast for the rest of the year and topped Wall Street targets in Q2, but investors were unimpressed with results in the chipmaker's data center business and the stock took a dive in after hours trading on Thursday.
The outlook for Intel has been especially cloudy since CEO Brian Krzanich abruptly resigned in June, due to what the company said was an inappropriate past relationship with an employee.
With CFO Bob Swan temporarily filling in as interim CEO, Intel is under pressure to reassure investors and customers that it has plan to thrive in a competitive and rapidly shifting market in which its bread-and-butter PC business is less relevant by the day. And to judge by Thursday's reaction, Wall Street is not giving Intel much leeway.
Despite beating on most metrics in Q2, Intel shares sank more than 5% following its earnings report.
Data centers grew 26.9% to $5.55 billion, but analysts were expecting revenue of $5.63 billion, according to Reuters.
Intel CFO and interim CEO Bob Swan quickly put the question of its next CEO to rest, telling analysts on the earnings call that Intel does not have a timeline for finding a replacement CEO but that the board is actively looking both inside and outside of the company.
"The board is making good progress determining the best person to be the next CEO of this great company," Swan said.
Here's what Intel reported.
- Earnings per share for the quarter (adjusted) were $1.04. Analysts expected $0.96.
- Revenues for the quarter (GAAP) were $17 billion, up 15% from the year before. Analysts expected $16.76 billion.
- Guidance for earnings per share in Q3 (adjusted) is $1.09. Analysts expected $1.08.
- Guidance for revenues in Q3 (GAAP) is $18.1 billion. Analysts expected $17.65 billion.
- Guidance for earnings per share for full year (adjusted) is $4.15.
- Guidance for revenues for full year (GAAP) is $69.5 billion.
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