forecast less revenue than expected for the June quarter, sending the stock lower in after-hours trading.
The company cited weaker PC demand from consumers and macroeconomic uncertainty for its guidance.
The semiconductor company reported adjusted earnings per share of 87 cents, compared with Wall Street’s consensus estimate of 78 cents, according to FactSet. Revenue came in at $18.4 billion, which was slightly above with analysts’ expectations of $18.3 billion.
But Intel also predicted revenue for the current quarter of $18 billion, which was below the consensus call of $18.3 billion.
) shares fell as much as 5% initially following the release.
On the conference call, the company’s management said the consumer and education markets were softening, while commercial remained strong. Intel executives also said there were inflationary pressures and PC component supply challenges.
Analysts have been cautious about the maker of chips for personal computers because demand is slowing in the end markets it serves.
Earlier this month, research firm IDC said worldwide shipments for PCs fell 5% year over year for the first quarter on slowing consumer demand and supply chain issues.
On Monday, Morgan Stanley analyst Joseph Moore reiterated his $47 target for Intel’s stock and maintained his Underweight rating.
“While we continue to believe that the company is heading in a better long term direction, during the investment phase we see the stock moving sideways, given limited near term cash flow and continued share loss,” he wrote.
Earlier this week, Bernstein analyst Stacy Rasgon reiterated an Underperform rating and $40 price target for Intel stock, citing poor business fundamentals and weak PC market trends.
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