Intel nasdaq Intc Pre market Plunge Weak Guidance Overrides Earnings Beat

Intel (NASDAQ: INTC) Pre-Market Plunge: Weak Guidance Overrides Earnings Beat

Intel Corporation (NASDAQ: INTC) stock plunged 7% in the pre-market trading Friday as weak guidance overshadows earnings beat.

Intel (INTC) recently released its first-quarter financial results, showcasing robust revenue and earnings that beat analyst expectations. However, investor sentiment soured after the company issued Q2 revenue guidance below estimates.

Financial Highlights

Intel reported a loss of $437 million, or 9 cents per diluted share, in the first quarter. This represents a significant improvement compared to the year-ago quarter, with the loss shrinking by 86%. Analysts had estimated a slightly higher loss of $454.86 million, or 13 cents per share.

Adjusted earnings, excluding items such as share-based compensation and restructuring charges, outperformed expectations, coming in at $759 million, or 18 cents per diluted share.

Total revenue for the first quarter reached $12.7 billion, reflecting a 9% increase driven by growth in personal computing, data center, and AI businesses.

Intel’s Foundry unit reported revenue of $4.4 billion for the quarter, experiencing a slight decline of approximately 10% year-over-year.

Intel Q2 Revenue Guidance

Despite the strong first-quarter performance, Intel provided a lukewarm revenue guidance for the second quarter. The company forecasted Q2 revenue to range between $12.5 billion and $13.5 billion, with the higher end of the guidance missing the consensus estimate of $13.79 billion among analysts surveyed by Visible Alpha.

David Zinsner, Intel CFO said the following about the Q1 earnings release,

“Q1 revenue was in line with our expectations and we delivered non-GAAP EPS above our guidance, driven by better-than-expected gross margins and strong expense discipline.”

Intel (NASDAQ: INTC) Stock Reaction

At the time of this report, INTC stock stands at $32.70, indicating a 6.86% decrease from the previous trading session. It is down 30.13% year-to-date.