Intel Corporation (NASDAQ:INTC) shares plunged after the company slashed its full-year 2022 guidance and reported second-quarter revenue and profits that missed analyst expectations after the bell on Thursday.
Intel shares opened about 10% lower at $35.80 per share on Friday.
The chipmaker reported a 22% decline in GAAP revenue to $15.3 billion for the second quarter, compared to $19.6 billion in the year-ago quarter, and the $17.9 billion consensus analyst expectation.
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Intel posted a GAAP net loss of $454 million or $0.11 per share, compared to a profit of $5.1 billion or earnings per share of $1.24 in the year-ago quarter, representing a 109% drop.
The company lowered its full-year revenue guidance to $65 billion to $68 billion from $76 billion but reiterated its prior adjusted free cash flow guidance of approximately $1 billion to $2 billion.
Amid global challenges impacting the chip sector and declining demand for PCs, Intel CEO Pat Gelsinger attributed the earnings shortfall to the sudden and rapid decline in economic activity as well as to execution issues.
“This quarter’s results were below the standards we have set for the company and our shareholders,” he said. “We must and will do better.”
Intel CFO David Zinsner added that the company remained committed to its business strategy, the long-term financial model communicated at its investor meeting, and a strong and growing dividend.
"We are taking necessary actions to manage through the current environment, including accelerating the deployment of our smart capital strategy, while reiterating our prior full-year adjusted free cash flow guidance and returning gross margins to our target range by the fourth quarter," Zinsner said.
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