As far as the semiconductor industry is concerned, Intel Corporation (NASDAQ:INTC) is the bell-weather, and on Thursday, there was a lot of anticipation among market watchers after the company announced its financial results for the first quarter.
However, the projections provided by Intel with regards to its second-quarter performance disappointed the markets, and the shares dropped by 5% later on in the trading day. It is also important to point out that Intel also withdrew its projections for the full year in light of economic uncertainties owing to the coronavirus pandemic.
In the first quarter, Intel generated revenues of as much as $19.83 billion, and the adjusted earnings came in at $1.45 per share. The first quarter performance surpassed analysts’ expectations of $18.70 billion in revenues and adjusted earnings of $1.28 per share.
On year on year basis, the revenues rose by 23% and also surpassed the company’s own projection of $19 billion. However, the real story lay in the company’s projections for the second quarter. Intel announced that it expects to generate $18.50 billion in revenues in the second quarter to go along with adjusted earnings of $1.10 per share.
Those figures disappointed the market, considering the fact that analysts had expected projections of $1.19 per share for adjusted earnings. The analysts’ expectations for revenues stood at $17.97 billion. In addition to that, the company withdrew its projections for the full year. Intel stated that it was not able to provide those projections and pointed out that it expects demand to be weaker from governments as well as enterprises in the latter half of the year. This announcement from the company has come as a bit of a dampener for market participants despite the impressive performance in the first quarter. The coronavirus pandemic has resulted in upheavals in many businesses across the world, and its full impact is still unknown.