Intel (INTC) earnings for the second quarter of 2022

Intel CEO Pat Gelsinger at the Chips for Health event at the Grischa Hotel at the World Economic Forum in Davos, Switzerland on May 24, 2022.

Eric Lalmand | Belgian strength | AFP | Getty Images

Intel The stock fell more than 9% in extended trading on Thursday after the chip maker reported second-quarter results and quarterly guidance that fell short of analysts’ expectations.

Here’s how the company did it:

  • Income: 29 cents per share, adjusted against According to Refinitiv, 70 cents per share, as expected by analysts.
  • Income: $15.32 billion vs. $17.92 billion, according to Refinitiv, as expected by analysts.

Intel’s revenue was down about 22% year-on-year in the quarter ended July 2. statement. The company ended the quarter with a net loss of $454 billion compared to a profit of $5 billion in the year-ago quarter. Gross profit decreased to 36.5% from 50.4% in the previous quarter.

As for the outlook, Intel called for adjusted earnings per share of 35 cents on revenue of $15 billion to $16 billion. Analysts polled by Refinitiv had expected adjusted earnings per share of 86 cents on revenue of $18.62 billion.

Intel lowered its expectations for the full year. The company said it now sees adjusted annual earnings of $2.30 per share and revenue of between $65 billion and $68 billion. The forecast from three months ago was $3.60 in adjusted earnings per share on revenue of $76.0 billion. Analysts polled by Refinitiv had expected $3.42 in earnings per share and $74.34 billion in revenue.

In the second quarter, Intel’s Client Computing Group, which includes PC chipsets, generated $7.7 billion in revenue, 25% below analysts’ consensus estimate of $8.89 billion polled by StreetAccount. Earlier this month, technology industry researcher Gartner said PC shipments fell nearly 13% during the quarter.

During the Intel quarter launched Habani Gaudi2 artificial intelligence learning chips that compete with Nvidia A100 video cards. and Intel urged Congress promote federal legislation to support U.S. semiconductor manufacturing so it can continue building the Ohio plant. Earlier Tuesday, the US House of Representatives passed the Chip and Science Actsending the bill to President Joe Biden.

Excluding after hours movement, Intel shares are down about 23% in 2022, while the S&P 500 is down less than 15% over the same period.

Executives will discuss the results with analysts in a conference call starting at 5:00 pm ET.

This story is evolving. Please stay tuned for updates.

WATCH: Intel will have to spend that money, and any help they get from the government is helping, says Bernstein’s Rasgon.