Oh the irony...
On the very day where the sector gets a massive handout from the government as the CHIPS funding bill heads to Biden's desk to be signed, Intel reports top- and bottom-line forecasts for Q2 and slashes its outlook for Q3 and full fiscal year.
For Q2 it was ugly:
-
Adjusted revenue $15.32 billion, estimate $17.96 billion (down from from $19.63 billion in the year-ago quarter)
-
Adjusted EPS 29c, estimate 69c
During the second quarter, Intel’s Client Computing Group, which includes PC chips, generated $7.7 billion in revenue, down 25% and considerably less than the $8.89 billion consensus estimate.
Datacenter & AI revenues massively missed at $4.6 billion (vs $6.04 billion estimate).
The outlook for Q3 was worse:
-
Sees adjusted revenue $15 billion to $16 billion, estimate $18.7 billion
-
Sees adjusted EPS 35c, estimate 82c
-
Sees adjusted gross margin 46.5%, estimate 51.4%
And the full year forecast was worsererer...
-
Sees adjusted revenue $65 billion to $68 billion, saw $76 billion, estimate $74.76 billion
-
Sees adjusted EPS $2.30, saw $3.60, estimate $3.39
-
Sees adjusted gross margin 49%, saw 52%, estimate 51.8%
Intel CEO Pat Gelsinger points to an apparent cliff-dive in the economy (but it's not a recession remember):
"The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues."
Intel's results are "...one of the worst reports of the whole season, and that’s saying something" according to @knowledge_vital.
Intel's CFO David Zinsner says:
"We are taking necessary actions to manage through the current environment, including accelerating the deployment of our smart capital strategy, while reiterating our prior full-year adjusted free cash flow guidance and returning gross margins to our target range by the fourth quarter"
INTC is down 10% after hours trading attheir lowest sine June 2017...
CEO Gelsinger summed it all up well: "we must and will do better."
With all that freshly printed taxpayer money, you better Pat!
Oh the irony…
On the very day where the sector gets a massive handout from the government as the CHIPS funding bill heads to Biden’s desk to be signed, Intel reports top- and bottom-line forecasts for Q2 and slashes its outlook for Q3 and full fiscal year.
For Q2 it was ugly:
-
Adjusted revenue $15.32 billion, estimate $17.96 billion (down from from $19.63 billion in the year-ago quarter)
-
Adjusted EPS 29c, estimate 69c
During the second quarter, Intel’s Client Computing Group, which includes PC chips, generated $7.7 billion in revenue, down 25% and considerably less than the $8.89 billion consensus estimate.
Datacenter & AI revenues massively missed at $4.6 billion (vs $6.04 billion estimate).
The outlook for Q3 was worse:
-
Sees adjusted revenue $15 billion to $16 billion, estimate $18.7 billion
-
Sees adjusted EPS 35c, estimate 82c
-
Sees adjusted gross margin 46.5%, estimate 51.4%
And the full year forecast was worsererer…
-
Sees adjusted revenue $65 billion to $68 billion, saw $76 billion, estimate $74.76 billion
-
Sees adjusted EPS $2.30, saw $3.60, estimate $3.39
-
Sees adjusted gross margin 49%, saw 52%, estimate 51.8%
Intel CEO Pat Gelsinger points to an apparent cliff-dive in the economy (but it’s not a recession remember):
“The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues.”
Intel’s results are “…one of the worst reports of the whole season, and that’s saying something” according to @knowledge_vital.
Intel’s CFO David Zinsner says:
“We are taking necessary actions to manage through the current environment, including accelerating the deployment of our smart capital strategy, while reiterating our prior full-year adjusted free cash flow guidance and returning gross margins to our target range by the fourth quarter”
INTC is down 10% after hours trading attheir lowest sine June 2017…
CEO Gelsinger summed it all up well: “we must and will do better.”
With all that freshly printed taxpayer money, you better Pat!
