Intel’s shares rose in late trading after its CFO stated that the company was starting to see “green sprouts.”
FactSet reports that the semiconductor company’s adjusted earnings per share for the first quarter were 4 cents lower than Wall Street’s consensus estimate, which was 16 cents. The company’s revenue was $11.7 billion. This was higher than analysts’ expectations, $11.01 billion. However, it was 36% lower year-over-year.
Intel’s current quarter revenue forecast range was $11.5 billion to $12 billion, which was higher than the midpoint consensus of $11.74billion.
After hours, shares of Intel (ticker: INTC), which is a part of the Intel group, rose by 3.8% to $31.00.
David Zinsner, Intel’s Chief Financial Officer, said in a telephone interview that the company is still dealing with a difficult macro-environment, but their general expectations for PC demand were roughly on track during the third quarter. The executive confirmed Intel’s previous 2023 PC industry estimate for a low-end range of 270 to 295 millions units. He said that Intel had seen some stabilization in the PC market and “green sprouts” of positive momentum in China.
In recent quarters, sales of PCs — many of which use Intel chips — have only continued to decline. IDC, a research firm, reported earlier this month that worldwide PC shipments fell 29% from a year ago in the March quarter. This follows a drop of 28% from a year ago in the December quarter, and a decline of 15% in the September.
Intel’s shares have dropped by about 35% in the past 12 months.