Intel CEO Pat Gelsinger, with U.S. President Joe Biden (not pictured), announces the tech firm’s plan to build a $20 billion plant in Ohio, from the South Court Auditorium on the White House campus in Washington, January 21, 2022.
Jonathan Ernst | Reuters
Intel reported first-quarter results on Wednesday that showed a staggering 133% annual reduction in earnings per share. Revenue dropped nearly 36% year-over-year to $11.7 billion.
Still, the loss per share and sales were slightly better than soft Wall Street expectations. The stock fluctuated in extended trading after initially rising on the report.
Here’s how Intel did versus Refinitiv consensus expectations:
- Loss per share: Loss of $0.04 per share, adjusted, versus a loss of 15 cents per share expected
- Revenue: $11.7 billion, adjusted, versus $11.04 billion expected
Intel’s guidance for the current quarter of about $12 billion in revenue and a 4 cent loss per share came up short versus analyst expectations of $0.01 in earnings per share on $11.75 billion in sales.
Intel recorded a net loss of $2.8 billion, compared with a profit of $8.1 billion last year. GAAP revenue decreased to $11.7 billion from $18.4 billion. It’s the fifth consecutive quarter of falling sales for the semiconductor giant and the second consecutive quarter of losses.
It’s also the largest quarterly Intel loss of all time, beating out the fourth quarter of 2017, where Intel reported a loss of $687 million.
Intel reports adjusted earnings and revenue, excluding a bunch of items including inventory restructuring, a recent change to employee stock options, and other acquisition-related charges.
As CEO Patrick Gelsinger enters his third year at the helm of the company that put “silicon” in “Silicon Valley,” investors are wondering if Intel has bottomed out. The stock is up over 9% so far in 2023, but down over 35% since this time last year.
Gelsinger’s turnaround plan when he took over was to open up Intel’s factories as foundries, or factories that…
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