Intel
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.