By Yasin Ebrahim
Intel (NASDAQ:INTC) fell in after-hours trade on Thursday, as a weaker outlook on quarterly profit offset first-quarter earnings that beat analysts' forecasts and revenue that topped expectations.
Shares fell more than 5% postmarket.
The company guided second-quarter revenue and sales of $18.5 billion and $1.10 earnings per share, compared with estimates for $17.8 billion and earnings of $1.17 a share.
"Intel reported an impressive quarter, showing strong double-digit growth in its Data Center Group and its PC-centric unit. But the weak second-quarter forecast shows that there will be headwinds after the Covid-19 outbreak and it will be hard for Intel to completely insulate its business from the economic slowdown," Analyst Haris Anwar said.
Intel announced earnings per share of $1.45 on revenue of $19.83 billion. Analysts polled by anticipated EPS of $1.28 on revenue of $18.63 billion. That compared with an EPS of $0.89 on revenue of $16.06 billion in the same period a year before. Intel had reported EPS of $1.52 on revenue of $20.21 billion in the previous quarter. Analysts are expecting EPS of $1.19 and revenue of $17.71 billion in the upcoming quarter.
The company attributed the stronger results to rising sales for chips used in data centers and growing demand for higher-performance products used in personal computers and related devices.
Its higher-margin data center business saw revenue up 43% on-year, driven by broad strength, including 53% annual growth in cloud service provider revenue. Intel's memory business (NSG) and Mobileye (F:0ME) both set new revenue records in the first quarter.
Revenue for its client computing group was up 13.8% to $9.8 billion.
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