Intel (INTC) earnings Q1 2020

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Intel CEO Robert “Bob” Swan announces the company’s Tiger Lake chips at the technology fair CES.

Christoph Dernbach | picture alliance | Getty Images

Intel shares fell 4% on Thursday after the company reported earnings for its fiscal first quarter.

Here are the key numbers:

  • Earnings: $1.45 per share, adjusted
  • Revenue: $19.83 billion

Analysts polled by Refinitiv had expected $1.28 in earnings per share on an adjusted basis and $18.70 billion in revenue. Comparing the results against analysts’ estimates is not straightforward, though, given that the coronavirus impacted economies around the world during the quarter.

Revenue rose 23% on an annualized basis in the quarter that ended on March 28, coming in above the company’s $19.00 billion forecast, according to a statement.

With respect to guidance, Intel said it expects $1.10 in adjusted earnings per share and $18.5 billion in revenue in the second quarter. Analysts polled by Refinitiv had expected adjusted second-quarter earnings of $1.19 per share on $17.97 billion in revenue.

Intel said it would not give guidance for the full year.

Intel’s Client Computing Group, which includes PC chips, produced $9.78 billion in revenue in the quarter. That’s 13.8% higher than the first quarter of 2019 and more than the $9.34 billion consensus among analysts surveyed by FactSet.

The Data Center Group, including chips for cloud providers and enterprise-focused server makers, posted $6.99 billion in revenue, growing 42.7% and greater than the FactSet consensus of $6.32 billion.

In the quarter Intel demonstrated 10-nanometer mobile chips codenamed Tiger Lake, saying they would ship later this year, and provided a preview of its DG1 discrete graphics card.

PC shipments fell nearly 10% year over year in the quarter, according to IDC estimates. Still, Intel’s demand was “relatively strong” in the first quarter as people needed devices to work and take classes from home to avoid catching coronavirus, CEO Bob Swan said in an interview with Bloomberg on April 9.

Goldman Sachs analysts led by Toshiya Hari upgraded its rating on Intel stock to neutral from sell on March 24.

“Despite the headwinds related to Covid-19, we are maintaining our estimates as we believe there are multiple near-term positive developments (i.e., potential strength/resilience in the high-end client CPU and server CPU markets given a growing number of people working/studying from home) that could largely offset the headwinds (i.e., weaker consumption and enterprise spending),” the analysts wrote in a note.

Intel stock is roughly flat for the year.

This is breaking news. Please check back for updates.

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