Chipmaker Intel (INTC), late Thursday, beat Wall Street targets for the quarter. However, the company offered mixed expectations for the second. Intel's stock rose during extended trading.
Santa Clara-based company, which had sales of $11.72 Billion in the quarter ending March, lost 4 cents per share adjusted. FactSet polled analysts who expected Intel to lose a loss of 16 cents per share on sales $11.01 billion. Intel had earned 87c per share in the previous period on sales of 18.35 billion dollars.
Intel's midpoint forecast predicts an adjusted loss per share of 4 cents on sales of 12 billion dollars for the current quarter. Wall Street expected Intel to break even with sales of $11.74 Billion in the second quarter.
In a press release, Chief Executive Pat Gelsinger stated that "while we remain cautious about the macroeconomic outlook we are focused only on what we control." He said that this includes meeting product and manufacturing milestones.
Intel Stocks Seesaws after Report
Intel's stock fell initially in today's after-hours trading, but then rebounded. Recent trades showed it up 4.8% at 31.30. Intel's stock closed at 29,86 during the regular session on Thursday.
Intel's Client computing Group saw its sales fall 38% to $5.8 Billion in the same period, despite continued PC sales weakness.
Sales in Intel's Data Center and AI division fell 39%, to $3.7 billion. Intel's Network and Edge Division reported a drop in sales of 30% to $1.5 billion.
Chip firms cut forecasts
This earnings season, semiconductor stocks have been hit as many chipmakers have cut their forecasts due to weakening demand.
In addition to Texas Instruments, Impinj and Mobileye have all lowered their guidance. MaxLinear and Wolfspeed disappointed investors as well with their guidance.
IBD Stock Checkup shows that 18 of the 30 stocks in IBD’s semiconductor manufacturing industry are listed. IBD Composite rating for INTC is 25 out of 99.
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