Intel Reports Lower Q2 Profit

Global semiconductor leader

released its fiscal second-quarter earnings on Wednesday after the closing bell. The company reported both earnings per share and revenue that came in below Wall Street consensus estimates. Intel also provided updated guidance for the upcoming fiscal third-quarter and full-year. In late trade, the stock was last down better than 2 percent to $23.58.

“In the second quarter, we delivered on our quarterly outlook and made several key product announcements,” said Intel CEO Brian Krzanich. “In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company.” “Looking ahead, the market will continue buying a wide range of computing products,” he added. “Intel Atom and Core processors and increased SOC integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast growing ultra-mobile market segment.”

Intel reported net income for the fiscal second-quarter of $2.0 billion or $0.39 per share, compared to $2.8 billion or $0.54 per share, in last year's corresponding period. This missed Wall Street analysts' consensus EPS estimates of $0.39. Revenue in the quarter was $12.81 billion from $13.50 billion last year. This also missed consensus estimates of $12.90 billion.

Looking ahead to the fiscal third-quarter, Intel guided for revenue of $13.5 billion, plus or minus $500 million. This compares to current analysts' consensus revenue estimates of $13.73 billion. For the full-year, the company guided for flat revenue growth year-over-year, compared to its previous guidance calling for growth in the low single digits on a percentage basis.