rice Intel’s stock price plummeted in after-hours trading on the U.S. stock market on the 25th. The company’s earnings forecast for the April-June (second quarter) announced on the same day was lackluster, suggesting that it is struggling to return to the top of the semiconductor industry.
According to presentation materials, sales for the April-June period are expected to be approximately $13 billion (approximately 2.23 trillion yen). Analysts polled by Bloomberg had expected an average of 13.6 billion. Excluding certain items, earnings per share are expected to be 10 cents, lower than market expectations (24 cents).
The outlook suggests that CEO Pat Gelsinger’s efforts to turn Intel around will take more time and money. Intel, once the world’s largest semiconductor maker, has lagged behind rivals such as Nvidia and Taiwan Semiconductor Manufacturing Co. in sales and technological know-how.
Intel also was unable to produce enough parts at its packaging facilities to meet all demand for processors used in new artificial intelligence (AI)-enabled personal computers (PCs).
“The second half of the year is going to be pretty strong,” Chief Financial Officer Dave Zinsner said in an interview, although he acknowledged that business had been slower than expected.
Intel’s stock price fell 9.4% in after-hours trading after the close of regular trading.
Intel’s first quarter results showed earnings per share of 18 cents excluding certain items, and sales of $12.7 billion. Analysts on average had expected earnings of 13 cents a share and revenue of $12.7 billion.
Original title: Intel Slides After Tepid Forecast Shows Comeback Challenges (2) (excerpt)
(We will add the January-March financial results and CFO’s opinion and update the stock price.)
Tags: Intels AprilJune outlook falls short market expectations stock price plummets hours Bloomberg
