Intel's Earnings Rise as It Profits From Work-at-Home Computing Demand
April 23 2020 - 05:12PM
Dow Jones News
By Asa Fitch
Chip maker Intel Corp. reported a jump in first-quarter earnings
buoyed by sales in its data-center business as the work-from-home
economy spurs demand for computing power, but it joined many
companies in pulling full-year guidance because of business
uncertainty.
The Santa Clara, Calif., company, the U.S.'s largest chip maker,
reported sales of $19.83 billion for the March quarter, a 23%
increase over the same period last year. Earnings per share rose
51% to $1.31.
With the pandemic forcing millions of people to work from home,
Intel said its datacenter division, already growing before the
health crisis, saw sales increase 43%. Providers of data centers,
the huge server farms that store data and power the internet, have
been accelerating upgrades and adding hardware, including Intel
processors, to cope with growing demand.
Sales in the company's division that includes chips powering
personal computers came in ahead of Intel's expectations, rising
14% as consumers bought machines to work remotely.
The sales outlook of $18.5 billion for the current quarter came
in above the $17.79 billion analysts surveyed by FactSet were
expecting. Intel's guidance for adjusted per-share earnings of
$1.04 came in short of what Wall Street has been projecting, and it
pulled its guidance for the full year. Like other tech companies,
Intel has been juggling a mixture of costs and benefits from the
pandemic but has held up well relative to many corporate peers.
Intel's stock fell more than 5% in after-hours trading.
The first-quarter results came in ahead of Wall Street
forecasts. The company was projected to make $1.23 in earnings per
share on $18.67 billion of sales, according to FactSet.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
April 23, 2020 16:57 ET (20:57 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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