This Thursday (28), Intel shares tumbled 10% in long trading sessions after the earnings report was released. The document reveals that the company “slightly” missed its estimated profit of $17.92 billion in the second quarter of this year, an increase of 16.97%, or $2.6 billion.
Ending the period with “only” $15.32 billion in profits, Intel fell 22% year-on-year. In a virtual conference with analysts, the company’s CEO, Pat Gelsinger, explained that the post-pandemic period is mainly responsible for the performance achieved, as the economy faces a braking scenario due to rising inflation.
For year-end, Intel readjusted its earnings expectations to $68 billion, significantly lower than experts’ estimate of $76 billion last quarter.
Big drop in PC market
Probably one of the main reasons for the decline in Intel’s financial income can be attributed to the minimization of the overall computer market. As with Microsoft, Intel has had to deal with significant declines in sales of equipment for small and medium businesses.
In this context, research firm Gartner has detailed a 13% drop in PC sales in the second quarter of this year – a problem driven by the overall increase in operating costs. But Intel’s head of finance, David Zinsner, believes he’s found the root of the problem. According to him, the increase in seasonal sales and the increase in prices at the end of the year should keep the company’s net profit between 51% and 53%.
Source: Tec Mundo
