Coronavirus impacts Intel's outlook, shares fall
Demand for mobile computer and related products was stronger as people sheltered in place
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Intel Corp. isn't giving forecasts for the full year as it monitors the impact that a global recession due to coronavirus will have on business.
Shares of Intel fell as much as 6 percent in after-hours trading.
The company said that demand for mobile computer and related products was stronger as people sheltered in place, but there are concerns of a stall depending on a recession.
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"Headwinds include the impact of a global recession on IOTG end markets, particularly industrial and retail, lower automotive production impacting Mobileye and slowing enterprise and government data center demand," said Chief Financial Officer George Davis on the company's earnings call.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 23.93 | -0.12 | -0.50% |
First-quarter net income was $5.66 billion.
Profit came in at $1.31 per share. Earnings, adjusted for one-time gains and costs, came to $1.45 per share.
The results topped Wall Street expectations.
The world's largest chipmaker posted revenue of $19.83 billion in the period, which also beat Street forecasts.
For the current quarter ending in July, Intel expects its per-share earnings to be $1.10. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.05.
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The company said it expects revenue in the range of $18.5 billion for the fiscal second quarter. Analysts surveyed by Zacks had expected revenue of $17.24 billion.
The Associated Press contributed to this article.