Intel forecasts disappoint | The Press

(New York) The American semiconductor manufacturer Intel published a net loss in the first quarter on Thursday, accompanied by forecasts for the current period which made the market bristle, causing the stock to fall.


The historic player in computer chips recorded a net loss of $400 million over the first three months of the year.

Reported per share and excluding exceptional items, the parameter most followed by investors, Intel generated a profit of 18 cents, above the 13 cents anticipated by analysts.

The Santa Clara (California) group notably suffered from a colossal loss of $2.4 billion in its foundry business, which consists of producing semiconductors as a service provider.

It masks the fact that operating results for all of Intel’s other businesses were positive, particularly the division that produces semiconductors for consumer computing equipment, from laptops to connected devices.

In total, turnover increased by 8.6% to $12.7 billion.

For the second quarter, Intel expects revenue of between $12.5 billion and $13.5 billion, as well as a new net loss.

Even the upper end of the range is lower than analysts’ forecasts, which, on average, predict $13.6 billion.

This discrepancy greatly displeased the market, which immediately punished Intel’s action, which dropped nearly 8% in electronic trading after Wall Street closed.

Despite the foundry’s losses, general manager Pat Gelsinger said he was confident in the development of this new model at Intel.

He said the group was targeting revenue and profit growth for the year, as well as an improvement in gross margin of around 2 percentage points.


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