Intel Corporation & Cree Fall After Earnings (NASDAQ:INTC, CREE)
Intel Corporation (NASDAQ:INTC) late Tuesday reported 13% fall in its first-quarter profit as research and marketing costs jumped during the period, but the results beat analysts’ estimates.
The company posted a profit of $2.74 billion, or 53 cents a share, down from a year ago profit of $3.16 billion, or 56 cents a share, topping analysts’ estimates by 3 cents.
Revenue during the quarter remained unchanged at $12.9 billion, slightly above analysts’ forecast of $12.8 billion.
The company also provided outlook for its second-quarter and expects to generate revenue within a range of $13.1 billion to $14.1 billion, compared to analysts’ estimates of $13.4 billion.
Chief Financial Officer Stacy Smith said hard-drive supplies improved during the quarter and the shortage is now over.
However, shares of INTC fell over 3% to $27.60 in the pre-market session after hitting a 7-year high of $28.78 in the previous trading session.
Cree, Inc. (NASDAQ:CREE) shares are hammering down sharply in the pre-market session after the company reported a 50% fall in its third-quarter profit due to weak sales and increased overhead costs. Moreover, the company provided lackluster fourth quarter earnings outlook.
The company expects to earn 20 cents and 26 cents on revenue of $295 million to $315 million in the current quarter, well below analysts’ estimates of 28 cents and $323 million.
During the latest quarter, the company earned $9.5 million, or 8 cents a share, compared to a year ago profit of $18.9 million, or 17 cents a share. On an adjusted basis, the company would have earned 20 cents. Revenue during the period jumped 30% to $284.8 million. The company in January guided 18 cents to 25 cents a share in earnings on revenue of $290 million to $310 million.
Gross margin trimmed to 34.9% from 41.7% due to higher revenue costs. Overhead expenses soared 33%.
Shares of CREE are down 8% to $29.35 in the pre-market session.