Intel Beats But Stock Slides On Poor Profit Margin, Disappointing Guidance

  • Sees adjusted revenue $72.5 billion, up from the $72 billion forecast previously, beating the estimate $72.09 billion; Sees GAAP revenue $77.0 billion, saw about $76.5 billion
  • Sees adjusted EPS $4.60, saw $4.55, beating the estimate $4.56

Intel admits to sandbagging guidance, saying that the forecast could be even strong if supply (i.e., the chip shortage) normalizes considering the record demand for PCs. Sure enough, notebook platform volumes increased 54% compared with last year, as demand for laptops remains off the charts:

  • *INTEL GAVE CONSERVATIVE FORECAST, COULD BE HELPED BY SUPPLY
  • *INTEL SAYS PC ENVIRONMENT VERY STRONG, COULD BE RECORD YEAR
  • *INTEL SEES NO INDICATION OF PC DEMAND SLOWDOWN

Some more headlines from an interview with CEO Gelsinger:

  • Intel Upside Constrained by Supply, CEO Gelsinger Says
  • Intel Says PC Environment Very Strong, Could Be Record Year
  • Co. Gave Conservative Forecast Could Be Helped by Supply
  • Co. Sees No Indication of PC Demand Slowdown
  • Intel Profitability in 2H Crimped by Costs, Competition
  • CEO Says Will Be Aggressive in Gaining Market Share
  • CEO Says Signs of Enterprise Spending Returning
  • Co. Has 50 Customers in Pipeline for Foundry Effort

Despite the solid beat and even more solid full-year guidance, investors were not excited by the company's disappointing quarterly guidance and margin miss, and pushed the stock lower after hours, although much of the kneejerk snap lower has been recovered.

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