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Intel Down After Missing Earnings Guidance Estimates

Intel was able to beat first-quarter estimates, but its guidance failed to meet earnings expectations for the second quarter.
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Shares of Intel Corp.  (INTC) - Get Intel Corporation Report dropped after hours Thursday despite reporting first-quarter results that were better than analysts expected.

The Santa Clara, Calif. technology company reported first-quarter earnings of $1.39 per share on revenue of $18.6 billion, which was flat year-over-year. Analysts were expecting earnings of $1.15 per share on revenue of $17.79 billion.

"The response to our new IDM 2.0 strategy has been extraordinary, our product roadmap is gaining momentum, and we’re rapidly progressing our plans with re-invigorated focus on innovation and execution,” said CEO Pat Gelsinger in a statement.

For the second quarter, the company expects revenue to fall to $17.8 billion on earnings of $1.05 per share. That surpasses consensus revenue estimates for $17.55 billion, but fell short of analyst earnings expectations of $1.09 per share. 

For the year, Intel expects revenue of $72.5 billion on earnings of $4.60 per share. Analysts are expecting revenue of $72.1 billion with earnings of $4.58 per share.

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“This is a pivotal year for Intel. We are setting our strategic foundation and investing to accelerate our trajectory and capitalize on the explosive growth in semiconductors that power our increasingly digital world,” Gelsinger said. 

Intel shares were down 1.8% to $61.43 after hours on Thursday after falling 1.8% during the day's session. 

In March, the company announced that it would exceed its previous guidance, and said that it plans to invest $20 billion in two new factories in Arizona. 

The company said it expects strong PC demand to continue for the full year, but that revenue will be hurt by shortages of third-party components, such as substrates. 

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