20.6 C
New York
Saturday, September 18, 2021

Intel beats expectations as sales remain declining: Quarterly profit fell by a percentage

The American Intel Corp., one of the world’s leading manufacturers of computer components, in the second quarter of 2021 reduced its net profit by 1% – to $ 5.06 billion compared to $ 5.11 billion in the same period last year.

At the same time, earnings per share increased to $ 1.24 from $ 1.19 a year earlier, according to a press release from Intel.

Intel’s profit excluding one-off factors was $ 1.28 per share, compared with $ 1.23 per share a year earlier.

The company’s quarterly revenue fell by less than 1% – to $ 19.63 billion from $ 19.73 billion, but its decline was noted for the fourth quarter in a row.

Analysts polled by FactSet, on average, predicted Intel’s adjusted earnings of $ 1.07 per share on revenue of $ 17.81 billion, the company itself – at $ 1.05 per share and $ 18.9 billion.

The quarterly revenue of the Client Computing Group (CCG, including the production of processors for PCs), the largest for the company, increased by 6%, to $ 10.1 billion, with an average forecast of experts of $ 10.03 billion.

At the same time, DCG’s data center equipment division showed a 9% decrease in revenue to $ 6.5 billion. The result was better than the consensus forecast of $ 5.84 billion.

The revenue of the business in the field of the Internet of Things (IoT) increased by 47%, to $ 984 million, against the forecast of analysts at $ 901.5 million.

Intel predicts third-quarter revenues of about $ 19.1 billion, or $ 18.2 billion excluding the memory chip business, and earnings per share of $ 1.08. Analysts on average forecast $ 1.09 per share adjusted earnings on $ 18.11 billion in revenue.

The company raised its forecast for revenue excluding this business for the entire current year by $ 1 billion, to $ 73.5 billion from the previously expected $ 76.5 billion, adjusted earnings – to $ 4.8 per share from $ 4.6 per share.

Also Read:

Intel CEO Pat Gelsinger noted that the problem of chip shortages in the global market is likely to persist in 2023. According to him, it may take one to two years to restore the balance of supply and demand in the industry.

Intel shares lost 2.6% during additional trading on Thursday. The company’s capitalisation has increased by 12.3% since the beginning of the year.

Latest Posts

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.