Investing.com - Intel (NASDAQ:INTC) shares fell more than 6% after hours Thursday after forecasting lower-than-expected results for the second quarter.
The guidance came as the chip giant reported first-quarter earnings that beat analysts' expectations and revenue that topped forecasts.
Intel reported earnings 89 cents a share on revenue of $16.06 billion. Analysts polled by Investing.com had anticipated 87 cents a share in earnings on revenue of $16.03 billion. That compared to earnings of $0.87 on revenue of $16.07 billion in the same period a year earlier. The company had reported earnings of $1.28 a share on revenue of $18.66 billion in the fourth quarter of 2018.
For the second quarter, Intel expects to earn 89 cents a share on revenue of $15.6 billion. The projection compares with an estimate of $1.02 from S&P Capital IQ and a revenue estimate of $16.88 billion.
Shares closed down 1.9% before the report.
In a statement, CEO Bob Swan said the company was taking a cautious view of the second half of the year. But Intel sees a stronger second half, the statement said.
Chip sales for use in personal computing-related business were up 4% to $8.6 billion. Sales of chips used in data-center systems were weaker during the quarter; revenue fell 6% to $4.9 billion. Business has been weak in China, and growth in cryptocurrency businesses has stalled.
In addition, Intel exited the business for 5G modems soon after Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM) settled their disputes in mid-April.