Intel beats as PC platform volume increases 33% from last year

Shares fell 2% after CEO Pat Gelsinger’s second earnings report at the helm of the American chip giant as investors assessed cautionary guidance on margins in the current quarter. Intel that beat both the company’s own forecast as well as Wall Street expectations, attributing the beat to strength in its business unit that produces chips for PCs. Intel said that PC unit sales were up 33% over last year.

Here’s how Intel did versus Refinitiv consensus estimates for the quarter ending in June: Intel raised its guidance for 2021 by $1 billion to $73.5 billion in adjusted revenue and full year earnings-per-share of $4.80. Intel’s results suggest that a boom in computer sales that started during the Covid-19 pandemic may continue even as people return to offices and schools. However, Intel guided to non-GAAP gross margins of 55% in Q3, a notable drop from 59.2% in Q2. Intel has committed to spend $20 billion to improve its manufacturing capabilities, including...read more...