Intel Company Earnings Soft, Forecast Softer
Intel Corp. (NASDAQ: INTC) reported second quarter results after markets closed today. The semiconductor maker reported diluted earnings per share (EPS) of $0.39 on revenue of $12.8 billion. In the same period a year ago, the company reported EPS of $0.54 on revenue of $13.5 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.40 and $12.9 billion in revenue.
In its guidance for the third quarter, the world's largest chipmaker forecast revenue of $13.5 billion (+/- $500 million) and gross margins of 61%, within a point or two either way. The consensus revenue estimate had called for $13.73 billion.
For the full fiscal year, Intel guided revenue flat with fiscal 2012 revenue of $53.34 billion, a decline from previous expectations for a percentage increase in the low single digits. The consensus estimate had been $53.51 billion. Full year gross margins are forecast at 59%, down from an earlier forecast of 60%.
Intel's new CEO, Brian Krzanich, said:
Looking ahead, the market will continue buying a wide range of computing products. Intel Atom and Core processors and increased SOC [system on a chip] integration will be Intel's future. We will leave no computing opportunity untapped.
Well, that's great, but there's a lot of competition in those other computing opportunities, and with PC sales declining and cheaper chips going into mobile devices, Intel's work is really cut out for the company.
Intel's shares are down about 1.5% in after-hours trading, at $23.80 in a 52-week range of $19.23-$26.90. Thomson Reuters had a consensus price target of around $23.65 before today's results were announced.
Filed under: Technology Tagged: INTC