Intel Tanks on Weak Q3 Earnings Guidance

Intel was, however, able to top analysts' second quarter earnings and revenue expectations.
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Shares of Intel  (INTC) - Get Report dropped after hours Thursday after the chipmaker reported second quarter results that topped estimates, but also guided for third quarter earnings below estimates. 

The Santa Clara-based company reported second quarter earnings of $1.23 per share on revenue of $19.7 billion. Analysts were expecting the company to report earnings of $1.11 per share on revenue of $18.55 billion. 

“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 CEO Bob Swan. 

However, for the third quarter, Intel expects to generate revenue of $18.2 billion on earnings of $1.10 per share. Wall Street is expecting revenue of $17.9 billion with earnings of $1.14 per share. 

Intel shares were down 8.3% after hours to $55.49 following the release. 

Earlier this week Intel announced that it teamed up with Ford  (F) - Get Report to power its driver-assistance systems through its Mobileye segment. 

Ford and Mobileye have collaborated for years, but this deal represents the first time Ford is deploying the Intel unit’s technology for the entire life cycle of its next-generation vehicles. That includes the new Ford Bronco in addition to the Mustang and the F-150.

Mobileeye saw revenue in the quarter fall 27% year over year to $146 million, so a collaboration with Ford could help turn the unit's direction around. 

“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,"  Swan said.