Intel shares dropped in extended trading on Thursday after the chipmaker issued an outlook for the first quarter of 2024 that lagged analyst forecasts even as results for the latest quarter beat Wall Street estimates.
Here’s how Intel did versus LSEG (formerly Refinitiv) consensus expectations for the quarter ended in December:
- Earnings per share: 54 cents adjusted, vs. 45 cents expected
- Revenue: $15.4 billion vs. $15.15 billion expected
For the first quarter of fiscal 2024, Intel expects earnings per share of 13 cents on between $12.2 billion and $13.2 billion in sales, versus LSEG expectations of 33 cents per share on $14.15 billion of revenue.
Intel CEO Pat Gelsinger said on a call with analysts that the company’s core businesses — PC and server chips — would be at the low end of the the company’s seasonal range in the current quarter, but that Intel’s overall sales would take a hit because of weakness in subsidiaries including Mobileye and its programmable chip unit, as well as revenue decreases from other businesses the company has spun off or sold.
“The core business we see as healthy,” Gelsinger said. “We see no areas for market share loss and the products are getting stronger.”
Intel posted net income of $2.7 billion, or 63 cents per share, compared to a net loss of $0.7 billion, or 16 cents per share, last year.
With Intel reporting sales growth in the fourth quarter of 10% from $14.04 billion a year earlier, the company breaks a streak of seven quarters with declining revenue. Intel’s gross margin was 40%, down 2.6 percentage points annually.
Intel shares are up over 74% over the past year. The company is the largest semiconductor maker by revenue, according to Gartner, a market research firm, even though its market cap puts it below Nvidia and AMD on Wall Street.
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