Intel stock dropped 12% in morning trading Friday despite topping revenue and earnings estimates for the first three months of the year after issuing weaker-than-anticipated revenue guidance for the second quarter.
The company reported a loss of $437 million, or 9 cents per diluted share, in the first quarter, an 86% smaller loss than in the year-ago quarter and better than analyst estimates of a $454.86 million, or 13 cent-per-share, loss.
Adjusted earnings, which don't include items such as share-based compensation and restructuring charges, came in at $759 million, or 18 cents per diluted share, also better than estimates.
“Q1 revenue was in line with our expectations and we delivered non-GAAP EPS above our guidance, driven by better-than-expected gross margins and strong expense discipline,” said David Zinsner, Intel CFO.
First quarter revenue grew 9% to $12.7 billion, primarily driven by growth in its personal computing, data center, and AI business. Intel's Foundry unit reported $4.4 billion in revenue for the quarter, down roughly 10% year-over-year.
The company forecast Q2 revenue would come in between $12.5 billion and $13.5 billion, with the higher end of that guidance falling short of the $13.79 billion consensus among analysts surveyed by Visible Alpha.
