Intel sales were reportedly flat and the profit reportedly dropped in Q1 of 2021 according to the CEO Pat Gelsinger's initial earnings report. Intel's earnings per share were seen to be significantly higher compared to the analyst estimates as well as the company's own forecast. Intel stock, however, was down over 3% in extended trading despite sales being above analyst estimates.
Intel Revenue 2021
EPS or Earnings Per Share: $1.39 versus 1.15 (which was adjusted) expected a 1% down year over year.
Revenue: $18.57 billion versus $17.90 billion (which was adjusted) expected to be flat year over year.
The second fiscal quarter of Intel expects a whopping $17.8 billion when it comes to revenue which is slightly higher than the original analyst expectations of it only reaching $17.55 billion. The company also reportedly missed the analyst estimates when it came to the Q2 EPS since the original analyst expectation was $1.09 and Intel is now guiding at just $1.05 as the company spends in order to build more manufacturing facilities.
Intel CEO Reports
According to CNBC, Gelsinger reportedly took over back in February and announced some time earlier this month that the company would be investing $20 billion to make new microchip manufacturing plants. The announcement also said that the company plans to become a contract chip manufacturer, or a foundry, which works by making chips for other companies on top of their own chips.
The plan is expected to take years to complete. In the quarter that ended in March, Intel's quarterly earnings were reportedly flat in comparison to the same period of last year. This was despite the demand for microchips around the world skyrocketing.
Intel Client Computing Group
PC sales in general had their best quarter in years during Q1 according to a number of estimates. The quarter boosted the chipmaker as Intel noted that the sales of chips for their notebook laptops were a significant record for the company rising by 54% year over year. The total PC volumes were reportedly up by a whopping 38% during that quarter.
In a previous year-ago quarter, the company had reported a whopping $9.78 billion in sales when it came to the client computing group. This includes the PC chips versus $10.61 billion for the recent quarter. The group reportedly compromises over 59% of Intel's total revenue, according to USManufacturingNews.
Intel on Apple
However, there are now a lot of laptops and desktops that are low-cost Chromebooks which only need less expensive chips. Apple, a long-time Intel customer, is now increasingly using its very own chips instead of Intel's chips for Apple's Mac line of PCs. According to CFO George Davis' statement to analysts, Intel's performance in PCs was also despite Apple sales "ramping down."
Intel currently sells high-performance chips for certain data centers. The sales were also elevated last year as the company decided to bulk up on their cloud operations due to employees working at home. Just a year ago, Intel had reported a whopping $6.99 billion when it came to revenue in its very own data center group versus the $5.56 billion of this quarter.
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This article is owned by Tech Times
Written by Urian B
