Tuesday, June 25, 2024

Intel Earnings Fail to Meet Expectations

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Intel has reported earnings that failed to meet analyst expectations. The company’s revenue and profits have been steadily declining as consumers continue to purchase smartphones and tablets instead of PCs.

All Things D’s Arik Hesseldahl reported, “Intel’s second-quarter earnings just crossed the wires, and they’re below what analysts had expected. Earnings per share were 39 cents on sales of $12.8 billion, which amounts to a clean miss of the 40 cents and $12.9 billion analysts had expected. Intel shares initially fell by more than two percent in after-hours trading as the earnings crossed, but they then recovered and rose slightly.”

CNNMoney’s David Goldman observed, “Smartphones and tablets aren’t killing Intel just yet, but the chipmaking giant is getting very badly bruised. Amid an ongoing PC sales swoon, Intel on Wednesday reported its fourth straight quarter of sales declines and its third quarter in a row in which profit fell year-over-year. The company also gave a somewhat more pessimistic outlook for the rest of the year than it had previously forecast.”

Windows IT Pro quoted Intel CEO Brian Krzanich, who stated, “Looking ahead, the market will continue buying a wide range of computing products. We will leave no computing opportunity untapped. To embrace these opportunities, I’ve made it Intel’s highest priority to create the best products for the fast growing ultra-mobile market segment … I am more confident than ever about our opportunity as a company.”

But many analysts don’t share the CEO’s optimism. Bloomberg quoted Alex Gauna with JMP Securities, who said, “I think things will continue to be weak. They might not get worse, but I haven’t seen the path to how things get better.”

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