Shares of Intel (INTC) are up 7% after the microchip and semiconductor company reported that it has returned to profitability after two consecutive quarters of financial losses.
Intel reported earnings per share of $0.13 U.S. compared to a loss of -$0.03 cents that had been expected on Wall Street, according to Refinitiv data.
Revenue for this year’s second quarter came in at $12.90 billion U.S. versus $12.13 billion U.S. that had been forecast by analysts who track the company.
For the current third quarter, Intel is forecasting earnings of $0.20 U.S. a share on revenue of $13.40 billion U.S. That compares to consensus analyst expectations for $0.16 U.S. a share on $13.23 billion U.S. in revenue.
Intel executives said they are still seeing “persistent weakness” in all segments of the business, but that the latest results were achieved due to $3 billion U.S. of cost cuts.
Intel’s gross margin in Q2 was nearly 40%, topping the company’s forecast of 37.50%.
The strong Q2 earnings come after Intel reported two straight quarters of financial losses, including the biggest loss in the company’s 55-year history in this year’s first quarter.
Intel’s stock has declined 13% over the last year to trade at $34.55 U.S. per share.
