Intel Results Beat Street View; Q3 Earnings Outlook Weak; Shares Down 7%

(RTTNews) - Intel Corp. (INTC) Thursday reported a profit and revenues for the second quarter that trumped Wall Street estimates. However, the company's shares slipped 7% in extended session after the chipmaker forecast a profit for the third quarter, which is expected to miss current projections.

Santa Clara, California-based Intel reported second-quarter profit of $5.1 billion or $1.19 per share, up from $4.2 billion or $0.92 per share last year.

Adjusted earnings for the quarter were $1.23 per share, up from $1.06 per share last year. On average, 34 analysts polled by Thomson Reuters estimated earnings of $1.11 per share for the quarter.

Intel's revenues for the quarter were up 20% to $19.7 billion from last year's revenue of $16.5 billion. Analysts had a consensus revenue estimate of $18.55 billion for the quarter.

Intel achieved record second-quarter revenue with 34 percent data-centric revenue growth and 7 percent PC-centric revenue growth. These results were driven by strong sales of cloud, notebook, memory and 5G products.

"It was an excellent quarter, well above our expectations on the continued strong demand for computing performance to support cloud-delivered services, a work- and learn-at-home environment, and the build-out of 5G networks," said Bob Swan, Intel CEO. "In our increasingly digital world, Intel technology is essential to nearly every industry on this planet. We have an incredible opportunity to enrich lives and grow this company with a continued focus on innovation and execution."

Looking forward to the third quarter, Intel expects revenues of about $18.2 billion and adjusted earnings of around $1.10 per share. Analysts currently estimate earnings of $1.14 per share and revenues of $17.90 billion.

For the full year 2020, the company expects revenues of around $75 billion and adjusted earnings of $4.85 per share. Analysts currently estimate earnings of $4.81 per share and revenues of $73.86 billion.

INTC closed Thursday's trading at $60.40, down $0.65 or 1.06%, on the Nasdaq. The stock, further dropped $4.42 or 7.32% in the after-hours trading.