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Intel Reports Q1 2021 Earnings – States “This is a pivotal year for Intel”

By John F. Heerdink, Jr.

Reportedly, Intel Corporation (INTC) released Q1 earnings this week, first with CEO Pat Gelsinger in leadership. Sales remained flat and profit dropped in the first quarter of 2021. However, earnings per share were significantly higher than analyst estimates and the company’s expected forecast.

Chief Executive Officer Pat Gelsinger, announced earlier this month that Intel would invest $20 billion in new microchip manufacturing plants along with plans to become a contract chip manufacturer, or a foundry, which would make other company’s chips, in addition to its own chips.

“This is a pivotal year for Intel,” Gelsinger said in a statement.

But that plan will take years to come to completion. For the quarter ended in March, Intel’s quarterly sales and quarterly earnings remained flat in comparison to the same period last year, even as demand for microchips skyrocketed around the world. 

Earning Highlights:

  • EPS of $1.39 was reported versus $1.15 expected, a decrease of 1% year over year.
  • Revenue of $18.57 billion versus $17.90 billion expected.
  • Intel expects $17.8 billion in revenue in the second quarter, slightly higher than analyst expectations of $17.55 billion. Intel is viewing an EPS of $1.05 per share, below analyst estimates of $1.09 for its second quarter as it spends to build additional manufacturing capability.
  • PC sales increased, Intel said that sales of chips for notebook laptops increased 54% year over year and total PC volumes rose 38% in the quarter.
  • The client computing group that includes PC chips stood at $10.61 billion The unit comprises more than 59% of Intel’s revenue.
  • Intel’s autonomous vehicle subsidiary, Mobileye reported $377 million in revenue, up by 48% year-over-year.
  • Intel raised full-year guidance to earnings of $4.60 per share and sales guidance to $72.5 billion, from prior guidance of $4 per share and revenue of $72 billion.

Intel Corporation (INTC) seeks to expand the boundaries of technology to provide the most amazing experience possible while designing, manufacturing, and selling integrated digital technology globally. To learn more about Intel Corporation (INTC) and to track its progress please visit the Vista Partners Intel Corporation Coverage Page

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(Read Original Story: Intel revenue and profit drop slightly from last year in CNBC)


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