NEW YORK ( TheStreet) -- Intel (INTC - Get Report), the world's largest semiconductor maker, edged past Wall Street's sales estimates for the first-quarter in results released Tuesday afternoon even as earnings fell below forecasts.
The chipmaker earned 40 cents a share, down from 53 cents a share in the prior year's quarter. Intel reported revenue of $12.6 billion, compared to $12.9 billion for the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of 41 cents a share and revenue of $12.59 billion.
Investors shrugged off the earnings miss as shares crept up 0.05% to $21.94 in extended trading. The Santa Clara, Calif.-based company reported a gross margin of 56%, at the low end of the company's guidance, and down 8 percentage points year over year.
For its fiscal second quarter, Intel expects revenue of $12.9 billion, plus or minus $500 million, broadly in line with Wall Street's forecast of $12.85 billion. Intel also predicts a gross margin of 58%, plus or minus a couple of percentage points."Amidst market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the company," said Intel CEO Paul Otellini, in a statement. "We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter." Revenue from Intel's PC Client Group was $8 billion, down 6% year-over-year. Data Center Group revenue, however, was $2.6 billion, a hike of 7.5% compared to the same period last year. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: firstname.lastname@example.org