Announcing the first quarterly report after naming Robert Swan as its CEO, Intel (Nasdaq: INTC) on Thursday reported flat revenues and higher earnings for the first quarter. Revenues matched the market estimates, while earnings beat. Meanwhile, the stock fell about 7% in the extended trading session as the company’s full-year outlook fell short of expectations.Intel Q1 earnings rise, beat estimates

First-quarter earnings, excluding special items, were $0.89 per share, up from last year’s $0.87 per share and above Wall Street’s estimate. Meanwhile, unadjusted profit dropped to $3.97 billion or $0.87per share from $4.45 billion or $0.93 per share in the first quarter of last year.

At $16.1 billion, revenues were broadly unchanged from the year-ago quarter and in line with the estimates. A 4% increase in PC-centric revenue was offset by a 5% decline in data-centric revenue.

The stock fell about 7% in the extended trading session as the company’s full-year outlook fell short of expectations

During the quarter, Intel launched a new portfolio of data-centric products, featuring the 2nd-Generation Intel Xeon Scalable processor family with integrated Intel Deep Learning Boost. Earlier this month, the company said it scrapped the 5G mobile modem business, citing unfavorable market conditions. Interestingly, the announcement came soon after Apple (AAPL) and Qualcomm (QCOM) settled their patent dispute, paving the way for a revival of their partnership.

“We shipped a strong mix of high-performance products and continued spending discipline while ramping 10nm and managing a challenging NAND pricing environment. Looking ahead, we’re taking a more cautious view of the year, although we expect market conditions to improve in the second half,” said Robert Swan who took over as the CEO earlier this year.

The company said it is looking for unadjusted earnings of $0.83 per share for the second quarter, on revenues of $15.6 billion. Adjusted earnings are forecast to be $0.89 per share in the June quarter.

Meanwhile, the outlook for full-year adjusted and unadjusted earnings was lowered to $4.35 per share and $4.14 per share, respectively, from the guidance issued in January. The management expects revenues of $69 billion for fiscal 2019. The full-year outlook is below the consensus estimate of analysts.

Also see: Intel Corporation Q4 2018 Earnings Conference Call Transcript

In the December quarter, Intel’s adjusted earnings climbed 18% to $1.28 per share, on the back of a 9% rise in revenues to $18.7 billion. The growth was fuelled by the company’s revamped product portfolio and recovery of the memory chip market.

Shares of Intel hit a 19-year high last week after the company exited the 5G modem business. The stock, which gained 22% since the beginning of the year and 10% in the past twelve months, traded lower throughout Thursday’s trading session.

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