Update: Speaking on the investor conference call, CEO Bob Swan warned that "China headwinds have increased."
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Intel shares are plunging after hours after beating top- and bottom-line but slashing guidance.
In its first quarterly report card since Swan took the reins as permanent CEO in January, Intel reported flat year-over-year revenue.
Revenue and Earnings for Q1 came in better than expected:
*INTEL 1Q REV. $16.1B, EST. $16.03B
*INTEL 1Q ADJ EPS 89C, EST. 87C
But things have got worse...
with the firm slashing full fiscal year revenue guidance to $69 billion (estimate was $71.34 billion)
"Results for the first quarter were slightly higher than our January expectations. We shipped a strong mix of highperformance products and continued spending discipline while ramping 10nm and managing a challenging NAND pricing environment. Looking ahead, we're taking a more cautious view of the year, although we expect market conditions to improve in the second half," said Bob Swan, Intel CEO.
"Our team is focused on expanding our market opportunity, accelerating our innovation and improving execution while evolving our culture. We aim to capitalize on key technology inflections that set us up to play a larger role in our customers’ success, while improving returns for our owners."
For the next quarter, Intel estimates $0.83 for EPS (Wall Street expected $1.01) and revenues of $15.6 billion (analysts expected $16.85 billion).
And shareholders seem to have had enough, with the stock down almost 10% after hours...
As a reminder, last quarter, Intel missed Wall Street's expectations on revenue and earnings.
SMH - the semiconductor ETF - down 1.5% after hours...