Intel lowers its revenue forecast for the entire year



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(Reuters) – Intel Corp chip maker INTC.O is forecasting a business figure lower than analysts' estimates for the current quarter and narrowing the outlook for the full year on Thursday, making to drop its shares by 7% and raising fears of a slowdown in the sector until the end of 2019.

The company has reduced its revenue forecast for 2019 to 69 billion USD, against 71.5 billion USD expected investors at the last publication of its results in January.

The chip maker based in Santa Clara, Calif., Said it expects revenue and earnings of $ 15.6 billion and 89 cents per share for the second quarter ending in June, while analysts expected $ 16.85 billion and $ 1.01 per share.

Flea makers are battling a drop in demand because of the slowdown in the Chinese economy and the repercussions of ongoing trade disputes.

Intel's high-margin data center operations revenue fell 6.3% to $ 4.90 billion in the first quarter, hurt by weak Chinese market and inventory correction . Analysts expected revenue of $ 5.10 billion, according to the FactSet financial analysis and data analysis company.

Intel, Apple Inc.'s only iPhone chip vendor over the past year, announced last week its release of the 5G smartphone modem after Apple and Qualcomm Inc. settled their royalty dispute.

Intel's customer computing business revenue, aimed at PC manufacturers and the largest contributor to revenue, grew 4.45% to 8.59%. billions of dollars, exceeding FactSet's estimates of $ 8.38 billion.

The shares traded at $ 53.75 trading after the bell.

(Report by Sayanti Chakraborty in Bengaluru, edited by Sriraj Kalluvila)

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