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Intel stock fell after the company reported earnings.
David Paul Morris/Bloomberg
Intel
stock fell in extended trading Thursday after the company missed sales expectations and said its chief financial officer plans to retire in May. The company also chalked a decline in its PC business to broader component shortages.
For the third quarter, Intel reported adjusted earnings of $1.71 a share and adjusted revenue of $18.1 billion. The earnings figure beat analyst estimates of $1.11 a share, but analysts were looking for revenue of $18.2 billion, according to FactSet.
Intel stock (ticker: INTC) has dropped 9.8% in premarket trading Thursday following the report. Advanced Micro Devices (AMD) stock has risen 1.9%, suggesting that the issue is with Intel specifically, and not with chip stocks generally.
“We broke ground on new fabs, shared our accelerated path to regain process performance leadership, and unveiled our most dramatic architectural innovations in a decade,” CEO Pat Gelsinger said in a statement summing up the quarter.
Revenue in the PC-focused client computing group fell 2% year over year to $9.7 billion. The company said notebook volumes were hampered by industrywide component shortages, but that was partially offset by higher average selling prices and strength in the desktop computer business. Revenue in its data center group business jumped 10% to $6.5 billion.
The company said CFO George Davis plans to retire from Intel in May 2022, and that the company will conduct a search for a successor.
Intel raised its full-year adjusted earnings outlook to $5.28 a share, from $4.80. It also raised its outlook for 2022 adjusted gross margin to 57% from 56.5%. The company anticipates gross margins between 51% and 53% over the next two to three years and then moving upward from there.
The company expects revenue of about $74 billion in 2022, with a compound annual growth rate of 10% to 12% over the next four to five years. Consensus estimates for full-year 2022 revenue recently sat at $73.1 billion, according to FactSet.
Meanwhile, Intel expects capital expenditures of between $25 billion and $28 billion in 2022.
Intel also said its investor day will be pushed back to Feb.17, 2022, from Nov.18. On the earnings call, Gelsinger cited the search for a CFO and added that he hopes the event can take place in-person.
Write to Connor Smith at connor.smith@barrons.com