Intel Chip Sales Rise, Profit Forecast Falls Short
Intel reported financial results for the first quarter of 2021. Its PC chip business had sales of $10.6 billion, ahead of analyst expectations of $10.17 billion. Adjusted sales and earnings for the first quarter ended March 27 were $18.6 billion and $1.39 per share, higher than analyst estimates of $17.89 billion and $1.15 per share.
“Intel delivered strong first-quarter results driven by exceptional demand for our leadership products and outstanding execution by our team. The response to our new IDM 2.0 strategy has been extraordinary, our product roadmap is gaining momentum, and we’re rapidly progressing our plans with re-invigorated focus on innovation and execution,” said Pat Gelsinger, Intel CEO. “This is a pivotal year for Intel. We are setting our strategic foundation and investing to accelerate our trajectory and capitalize on the explosive growth in semiconductors that power our increasingly digital world.”
Second-quarter profit forecast fell short of analyst expectations as the company spends heavily to get its manufacturing operations back on track and catch up to rivals with faster chips. Intel expects 2021 adjusted revenue and profits of $72.5 billion and $4.60 per share, above analyst estimates of $72.32 billion and $4.58 per share. The chipmaker forecast second-quarter adjusted revenue and profits of $17.8 billion and $1.05 per share, with sales above analyst estimates of $17.59 billion but profits below estimates $1.09 per share.