Intel Reports Profit Surge But Warns of Further Delays on Advanced Chips

By Asa Fitch 

Intel Corp. reported stronger earnings in the second quarter, buttressed by a work-from-home economy that has spurred demand for computing power, but it signaled a delay in its development of superfast chips that sent its shares tumbling in after-hours trading.

Intel said Thursday its profit in the April-June period rose 22% from a year ago to $5.11 billion. Earnings per share were $1.19, rising from 92 cents a share last year and exceeding forecasts from analysts surveyed by FactSet. On an adjusted basis, EPS also rose to $1.23.

Second-quarter revenue rose more than 19% from a year earlier to $19.73 billion, coming in ahead of analysts' estimates.

But Intel revealed further delays in its seven-nanometer chip technology that underlies future generations of CPUs. The products are now expected to be delivered 12 months behind what the company initially envisioned, it said.

Shares fell more than 8% in after-hours trading.

Write to Asa Fitch at [e-mail]

(END) Dow Jones Newswires

July 23, 2020 16:53 ET (20:53 GMT)

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