Intel (NASDAQ:INTC) unveiled its latest quarterly earnings results after hours today, which included a strong performance on the profit and revenue sides of things, yet INTC stock was sinking late Thursday as the company’s full-year revenue guidance left something to be desired.
The Santa Clara, Calif.-based tech giant said that for its first three months of its fiscal 2019, it brought in adjusted earnings of 89 cents per share, roughly 2 cents per share above the Wall Street consensus estimate, according to data compiled from a survey of analysts that Refinitiv conducted.
Intel’s revenue for the period was also strong at $16.06 billion, better than the $16.02 billion that analysts predicted, according to Refinitiv. The company now sees its fiscal 2019 as bringing in sales of $69 billion, below the $71.05 billion that analysts predict, while also signifying a decline from the $70.8 billion in 2018, marking the company’s first annual revenue decline since 2015.
The company said that it will no longer continue to explore the possibility of doing business in the 5G smartphone space as it sees “no clear path to profitability.” Instead, Intel will continue focusing on its data center business, which did experience a first-quarter revenue decline of 5% year-over-year.
The brand’s enterprise and government revenue fell 21% year-over-year, while its cloud segment gained 5%.
INTC stock was down about 1.9% during regular trading hours as the company prepared itself to report its results for its first three months of 2019. Shares then plummeted about 7.7% after the bell off the heels of an underwhelming 2019 sales outlook.