Intel stock went down 8% on Friday, a day after the company reported disappointing second-quarter earnings that missed on the top and bottom lines.
Intel’s adjusted bottom line for the June quarter was pegged at 29 cents per share, well shy of Street forecasts of 70 cents, as revenues fell 22% to $15.3 billion thanks to weakness in the computing group.
Client computing revenue fell 25% from last year to $7.7 billion, Intel said, with little overall support from its Data Center and AI division, where sales fell 16% to $4.6 billion. Network and Edge Group sales were down 11% to $2.3 billion.
Current quarter sales, Intel added, would likely range between $15 billion and $16 billion, again missing analysts’ forecasts. For the year, Intel clipped its revenue forecast to between $65 billion and $68 billion, as softening demand, supply chain disruption and run-away inflation continue to hammer PC demand.
Intel shares were marked 11.4% lower in pre-market trading to indicate an opening bell price of $35.18 each, a move that would extend the stock’s year-to-date decline to around 31.7%.