Intel Misses Earnings, Resets Guidance
NEW YORK (TheStreet) -- Intel
The world's largest chip maker reported earnings of 39 cents a share on $12.81 billion in revenue. Gross margins came in at 58%, up 2% sequentially, but down 5% year-over-year.
Analysts surveyed by Thomson Reuters expected Intel to earn 39 cents a share on $12.896 billion in revenue. Estimize analysts estimated Intel would earn 40 cents a share on $12.86 billion in revenue.
"In the second quarter, we delivered on our quarterly outlook and made several key product announcements," said Intel CEO Brian Krzanich. "In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company."
Krzanich touched on Intel's future, especially as it relates to the mobile market. "Looking ahead, the market will continue buying a wide range of computing products," he said, in the press release. "Intel Atom and Core processors and increased SOC integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast growing ultra-mobile market segment."
For the third quarter, Intel appeared to reset market expectations, as Krzanich. Intel said it expects revenue to be $13.5 billion, plus or minus $500 million. Gross margins would be approximately 61%, plus or minus a couple of percentage points.
For the full year, Intel revised revenue guidance lower, saying it now expects it to be "approximately flat year-on-year, down from prior expectations of low single digit percentage increase." Gross margins are expected to be around 59%, plus or minus a couple percentage points, down from prior expectations of 60%, plus or minus a few percentage points.
The company also lowered its full-year capital spending plan. It now expects to spend $11 billion, plus or minus $500 million, down from a previous view of $12 billion.
Shares of Intel fell 0.33% to $24.17 during the regular trading session. The stock is moving lower in extended-hours trading, down 4.22% to $23.13 according to Nasdaq.com.
--Written by Chris Ciaccia in New York
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