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Intel down after earnings despite posting record revenue

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Yahoo Finance’s Jared Blikre joined Yahoo Finance Live to break down Intel’s latest earnings report and why the company is down despite to posting record revenue.

Video Transcript

ADAM SHAPIRO: Jared, I want to go back to Intel Corporation. In after hours, those shares are now negative. They're trading off about 2%. Investors don't believe the forecast. I mean, what's going on here? Why down after that big pop?

JARED BLIKRE: Well, there could be some disappointment around that. I think, overall, it's a decent report. And we just got some word-- got some news that the incoming CEO Pat Gelsinger is going to be on the call. And so what I was talking about before, when the earnings were released accidentally before the bell a little bit early, was this is part of a new turnaround strategy.

Intel is probably not gonna be making-- fabricating their own chips, at least on the high end, anymore. And that news came from ASML kind of reading between the lines. But they said they're shifting their production to some of the other major players like Taiwan Semi. So the turnaround strategy is gonna be the focus here.

Also some headlines from the earnings release. They're going to give their full year forecast on the first quarter call, so we're gonna have to wait three months for that. Also boosting their dividend by 5% to 34 and 3/4 cents. So, overall, not the worst report. Their fore-- excuse me, their outlook did come in better than expectations.

For instance, first quarter revenue, they saw 18.6 billion. Estimate was for lower, at 16.18 billion. And that number was misreported early on, right after that release before the bell, so that may have been a source of confusion there. But overall I think the focus is going to be on the call here, guys.