Intel's (NASDAQ:INTC) significantly weaker-than-expected guidance for the coming quarter overshadowed better-than-expected first-quarter results.
For the coming second-quarter, the Pat Gelsinger-led firm expects revenue to be between $12.5B and $13.5B, well below the $13.61B analysts were anticipating.
It also anticipates earning an adjusted $0.10 per share with adjusted gross margins of 403.5% and a tax rate of 13%. Analysts were anticipating adjusted earnings of $0.25 per share.
Shares fell more than 6% in extended-hours trading.
For the period ending March 30, Intel earned an adjusted $0.18 per share on $12.7B in revenue. The quarter is Intel's first period in changing its reporting structure to focus more on its foundry business. Intel products, which now includes client computing, data center and network and edge, came in at $11.9B, including a 31% year-over-year rise in Client Computing revenue to $7.5B.
Datacenter and AI revenue came in at $3B, while revenue attributed to Mobileye (MBLY) was $239M, down 48% year-over-year. The Network and edge segment generated $1.4B, while the company's foundry segment saw revenue decline 10% year-over-tear to $4.4B.
Analysts expected a year-over-year increase in both the top and bottom lines, with the Pat Gelsinger-led firm expected to earn $0.14 per share on $12.78B in sales.
A consensus of analysts expected Intel to earn an adjusted $0.14 per share on $12.78B in revenue.
“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,” Intel Chief Financial Officer David Zinsner said in a statement. "Our new foundry operating model, which provides greater transparency and accountability, is already driving better decision-making across the business. Looking ahead, we expect to deliver year-over-year revenue and non-GAAP EPS growth in fiscal year 2024, including roughly 200 basis points of full-year gross margin improvement.”
Competitors AMD (AMD) and Nvidia (NVDA) bucked the downturn and rose 1% and 2% in extended trading.
The company will hold a conference call at 5 p.m. EST to discuss the results.
