Intel (NASDAQ:INTC) shares fell Friday after the company reported better-than-expected second-quarter earnings and said next-generation chips would come out later than it had expected.
Earnings came in at $1.23 per share, adjusted, vs. $1.11 per share as expected by analysts. Revenue proved to be $19.73 billion, vs. $18.55 billion as expected.
With respect to guidance, Intel called for $1.10 in earnings per share on an adjusted basis and $18.2 billion in revenue for its fiscal third quarter. Analysts had expected $1.14 in adjusted earnings per share on $17.90 billion in revenue.
One quarter ago, Intel chose not to give full-year guidance, but on Thursday it announced a new forecast for the full year. It now sees $4.85 in adjusted earnings per share and $75 billion in revenue — implying 4% growth — compared with the $5 in adjusted earnings per share and $73.5 billion in revenue announced in January. The consensus among analysts was $4.81 in adjusted earnings per share and revenue of $73.86 billion.
Last year, Intel executives said 7-nanometer chips would launch in 2021, and that came after a delay of Intel’s 10-nanometer products. Now the company is ramping up production of 10-nanometer chips to meet demand for those products, rather than older products.
Intel now plans to make its first 7-nanometer chip shipments in late 2022 or early 2023, CEO Bob Swan said on a conference call with analysts on Thursday.
Shares in the company known as "Mr. Chips" tumbled $10.31, or 17.1%, early Friday to $50.09.
