7:53 AM, Apr 26, 2019 — Shares of Intel (INTC) dropped in pre-market trading on Friday after the company cut its full-year guidance and second-quarter earnings and revenue forecasts notably lagged the market consensus.
Revenue was flat year-on-year at $16.10 billion during the three months that ended March 30, beating the $16.03 billion average analyst estimate compiled by Capital IQ. Intel said in its earnings statement late on Thursday that a 21% plunge in enterprise and government unit sales led to a drop in turnover at the firm’s data-centric business, outweighing a 4% jump in its PC-focused sales.
Adjusted earnings per share rose to $0.89 from $0.87 a year ago, outpacing the Street’s guidance for $0.87 a share.
For the full-year 2019, Intel now expects revenue of $69 billion on earnings of $4.35 per share, versus projections in a Jan. 24 earnings statement of $71.5 billion in sales and $4.60 of earnings. Furthermore, the firm sees second-quarter sales of $15.6 billion and earnings of $0.89 per share, against a market consensus of $16.88 billion in turnover and $1.02 in earnings.
“Looking ahead, we’re taking a more cautious view of the year, although we expect market conditions to improve in the second half,” said Bob Swan, Intel chief executive officer, said in the statement. “Our team is focused on expanding our market opportunity, accelerating our innovation and improving execution.”
Shares of Intel slumped by 7.7% in pre-market trading.
Companies: Intel Corporation
Price: 53.19 Price Change: -4.42 Percent Change: -7.67