Intel (INTC  ) posted better than expected earnings and revenue for the first quarter. However, its stock opened lower following weak second-quarter guidance. The company's earnings report was hotly anticipated as the market is attempting to price in the effects of the coronavirus and subsequent slowdown. It's easy to figure out the impact on industries like airlines and hotels but much harder to understand the impact on tech spending by businesses and consumers which drives demand for Intel's products.

While the longer-term impact is uncertain, the earnings report makes it clear that in the short-term it benefitted due to the shutdowns leading to a rush to buy computers so that people could work from home or attend school virtually.

Inside the Numbers

It's worth noting that the coronavirus did not have a material impact on Intel's first-quarter. Earnings came in at $5.66 billion which was well above analysts' expectations and a big jump from the Q1 in 2019 at $3.97 billion. Revenue increased by 23% to $19.8 billion from $16.1 billion in the first quarter of 2019 and also handily beat the consensus target of $16.8 billion.

Intel is one of a few companies which issued guidance for the second quarter, but it did not give full-year guidance due to the uncertainties. In the first quarter, it fortified its balance sheet by suspended stock buybacks and raising $8 billion by issuing debt.

Resilient Stock Price

Intel's shares were lower following its earnings report which follows a pattern of many tech giants selling-off following a strong Q1 earnings report. Overall, its stock has been quite resilient as it's flat on a six-month basis and clawed back 70% of its losses from the coronavirus crash. In part, this is due to its strong balance sheet which insulates it from short-term pressures. Instead, Intel was able to capitalize on the environment by raising money at low rates.

Intel combines this stability with above-average growth rates as its revenue figures indicate. Its data-center group posted 43% revenue growth, while its client computing rose 14%, both above expectations. However, the stock sold-off as the market doesn't believe that this growth is sustainable given the short-term economic pressures. Additionally, it may be that some of the revenue growth is a one-time event due to the shutdown, and it may have even pulled some demand forward from future quarters.