The American chip giant Intel has announced that it has closed the second quarter of the year with a net profit of $ 51 billion, down 1% compared to the profit collected in the same period of 2020. The net earnings per share are it came in at $ 1.24, up 4% year-on-year. On an adjusted basis, eps was $ 1.28, up 12% yoy and above the expected $ 1.06 per share.
Adjusted revenue amounted to $ 18.5 billion, up 2% year-on-year, better than the estimated $ 17.8 billion.
Operating cash flow generated by the company in the second quarter of 2021 was $ 8.7 billion, while dividends paid to shareholders totaled $ 1.4 billion.
On the back of its balance sheet results, Intel revised its 2021 adjusted revenue guidance upward by $ 1 billion to $ 73.5 billion, versus an eps of $ 4.80.
Intel’s findings suggest that the boom in computer sales that began with the Covid-19 pandemic could continue as people return to school and offices.
However, the stock loses pre-market after the chip giant said it expects non-GAAP gross margin of 55% for the third quarter of the year, down sharply from 59.2% in the second quarter. Intel explained the decline in margins with the restrictions that are hitting the offer and with the costs associated with the production of chips with the adoption of a new technology.
The group has pledged to invest $ 20 billion to improve its manufacturing capacity, which includes two new factories in Arizona.
The giant’s number one, CEO Pat Gelsinger, said that “at this point, we’re not saying that an M&A transaction is crucial, but we’re not ruling it out either.”
However, Intel stock lost 2.6% in Wall Street afterhours trading, discounting the estimated decline in gross margin.