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Semiconductor industry

Tech Sector Sees Mixed Results in Q1: Intel Gains, GM Loses Big, and Others Show Improvements

Strategic Insights

— 1 min read

The technology sector showed mixed results in the first quarter, with Intel Corp.'s profit jumping by 25% driven by strong demand for notebook chips and lower-than-expected costs. Meanwhile, General Motors Corp. reported its largest quarterly loss in over a decade, citing the cost of providing health coverage for its workers and retirees. Other tech companies, including EMC Corp., Yahoo Inc., and Seagate Technology, reported solid earnings, with EMC's revenue potentially topping Wall Street's estimates this quarter.

Key Takeaways:

  • Intel's first-quarter profit rose 25% to $2.15 billion, or 34 cents a share, driven by strong demand for notebook chips and lower-than-expected costs.
  • General Motors Corp. reported a $1.1 billion loss in the first quarter, its largest quarterly loss in over a decade, with revenue falling 4.3% to $45.8 billion.
  • EMC Corp.'s net income surged to $269.8 million, or 11 cents a share, with sales rising 20% to $2.24 billion, potentially exceeding Wall Street's estimates this quarter.
  • Yahoo Inc.'s profit more than doubled to $204.6 million, or 14 cents a share, as the company sold more advertisements on its Web pages.
  • Seagate Technology's third-quarter profit rose 44% to $229 million, or 45 cents a share, driven by sales of Apple Computer Inc.'s iPod.

Statistics:

  • Intel's first-quarter profit: $2.15 billion, up 25% from $1.73 billion in the same period last year.
  • General Motors Corp.'s first-quarter loss: $1.1 billion, its largest quarterly loss in over a decade.
  • EMC Corp.'s net income: $269.8 million, up 92% from $139.8 million in the same period last year.
  • Yahoo Inc.'s first-quarter profit: $204.6 million, up 102% from $101.2 million in the same period last year.
  • Seagate Technology's third-quarter profit: $229 million, up 44% from $159 million in the same period last year.

Sources:

  • Intel Corp. quarterly earnings report.
  • General Motors Corp. quarterly earnings report.
  • EMC Corp. quarterly earnings report.
  • Yahoo Inc. quarterly earnings report.
  • Seagate Technology quarterly earnings report.

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