Intel ( INTC ) issued a quarterly outlook that fell short of analysts’ expectations, sending shares lower in extended trading Thursday.
The chipmaker projected second-quarter revenue of $11.2 billion to $12.4 billion, well below the analyst consensus compiled by Visible Alpha. Intel's projection of breakeven adjusted earnings per share also trailed analysts' forecasts.
"The current macro environment is creating elevated uncertainty across the industry, which is reflected in our outlook," CFO David Zinsner said.
Shares of Intel dropped more than 5% in after-hours trading after climbing 4.4% in Thursday's session. The stock was up about 7% for 2025 through Thursday’s close.
First-Quarter Results Top Estimates
Intel reported first-quarter revenue of $12.67 billion, down less than 1% year-over-year and above the analyst consensus. Adjusted net income of $580 million, or 13 cents per share, compared to $759 million, or 18 cents per share, a year earlier, also topping Wall Street’s estimates. Intel's foundry division, which makes chips for other companies, delivered revenue of $4.7 billion, beating projections.
During the company's earnings call, Zinsner said, "we believe Q1 revenue benefited from customer purchasing behavior in anticipation of potential tariffs," though he added it's "difficult to quantify the magnitude.”
CEO Lip-Bu Tan Says There Are 'No Quick Fixes'
“The first quarter was a step in the right direction, but there are no quick fixes as we work to get back on a path to gaining market share and driving sustainable growth,” said CEO Lip-Bu Tan, who took over the role in March. Tan added that he is "taking swift actions to drive better execution and operational efficiency."
The results follow a report this week that Intel plans to cut more than 20% of its workforce, as part of a bid to streamline its operations.
This article has been updated since it was first published to include additional information and reflect more recent share price values.
Read the original article on Investopedia