Intel Corp. shares slipped in the extended session Thursday after the chip giant’s total earnings, revenue and a boosted outlook topped Wall Street estimates, but quarterly revenue growth at its fastest-growing segment came in below the analyst consensus.
Intel INTC, -0.51% shares, which had been down about 3% after hours before the earnings conference call began, were down 4% during the call. On the regular session, shares finished down 0.5% to close at $52.16. Shares are up 13% for the year, compared with a 3.3% gain the Dow Jones Industrial Average DJIA, +0.44% , a 6.1% gain in the S&P 500 index SPX, -0.30% and a 13.7% gain in the tech-heavy Nasdaq Composite Index COMP, -1.01% .
Bob Swan, Intel’s chief financial officer and interim chief executive, headed Intel’s presentation of results following the sudden departure of former CEO Brian Krzanich in June.
“While there is no timetable, the board is working with a sense of urgency and the identification of candidates, both internal and external, is well underway,” Swan said of the search for a permanent CEO.
Shares dropped under pressure after hours as the chip maker fell short of Wall Street targets when it came to data-center sales, despite broader strong results. Intel reported a 27% gain in data-center revenue from a year ago to $5.5 billion, while analysts, on average, were looking for $5.61 billion.
On the call, Swan said he expects data-centric growth to be about 20% for the year, up from Intel’s April guidance of high-teen growth, which now puts it in-line with the Wall Street average. Analysts surveyed by FactSet, on average, expect full-year data-center revenue of $22.83 billion, or an increase of 19.8% from 2017.
“Product innovation, a strong global economy and U.S. tax reform are stirring CIO investment in IT infrastructure, leading to higher data center demand and a stronger PC [total addressable market],” Swan said.
Intel reported second-quarter net income of $5.01 billion, or $1.05 a share, compared with $2.81 billion, or 58 cents a share, in the year-ago period. Adjusted earnings were $1.04 a share. Intel on average was expected to post adjusted earnings of 97 cents a share, according to analysts surveyed by FactSet, and $1 a share from Estimize, a software platform that uses crowdsourcing...