Chip giant Intel (NASDAQ:INTC) shares sank as much as 10% in extended trading on Thursday after the chipmaker reported second-quarter results and quarterly and full-year guidance that fell short of analysts’ expectations.
Earnings were revealed to be 29 cents per share, adjusted, vs. 70 cents per share as expected by analysts. Revenue was $15.32 billion, vs. $17.92 billion as expected by analysts.
Intel’s revenue declined some 22% year over year in the quarter that ended July 2. Revenue missed consensus by 14%, the company’s largest top-line disappointment since 1999. It ended the quarter with a $454 million net loss, compared with net income of $5 billion in the year-ago quarter. Gross margin narrowed to 36.5% from 50.4% in the previous quarter.
With respect to guidance, Intel called for 35 cents in adjusted earnings per share on $15 billion to $16 billion in revenue. Analysts had expected 86 cents in adjusted earnings per share on $18.62 billion in revenue.
Intel lowered its full-year expectations. It said it now sees full-year adjusted earnings of $2.30 per share and revenue of $65 billion to $68 billion. The guidance from three months ago was $3.60 in adjusted earnings per share on $76.0 billion in revenue. Analysts had been looking for $3.42 per share in earnings and $74.34 billion in revenue.
INTC shares began Friday down $4.21, or 10.6%, to $35.51.
