Intel CEO Pat Gelsinger poses for a photo during the ‘Chips for health’ event at the Grischa hotel at the World Economic Forum in Davos, Switzerland, on May 24, 2022.
Eric Lamand | Belga Mag | AFP | beautiful pictures
Intel shares fell more than 9% in extended trading on Thursday after the chipmaker reported second-quarter results and quarterly and full-year guidance that fell short of analyst expectations.
Here’s how the company did it:
- Income: 29 cents/share, adjusted, compared with 70 cents/share as expected by analysts, according to Refinitiv.
- Turnover: $15.32 billion, compared with $17.92 billion as expected by analysts, according to Refinitiv.
Intel’s revenue fell about 22% year over year in the quarter ended July 2, according to a report statement. The company ended the quarter with a net loss of $454 billion, compared with $5 billion in earnings in the prior year’s quarter. Gross margin narrowed to 36.5% from 50.4% in last quarter.
“This quarter’s results were below the standards we have set for the company and our shareholders,” Chief Executive Officer Pat Gelsinger was quoted as saying in the statement. “We must and will do better. The sudden and rapid decline in economic activity is the biggest driver, but the shortfall also reflects our own enforcement issues.”
Regarding guidance, Intel called for 35 cents of adjusted earnings per share from $15 billion to $16 billion in revenue. Analysts polled by Refinitiv had expected adjusted earnings per share of 86 cents on revenue of $18.62 billion.
Intel has lowered its full-year expectations. It said it now sees full-year adjusted earnings of $2.30 per share and revenue between $65 billion and $68 billion. Guidance from three months ago was $3.60 in adjusted earnings per share on $76.0 billion in revenue. Analysts polled by Refinitiv looked for earnings of $3.42 per share and $74.34 billion in revenue.
For the second quarter, Intel’s Customer Computing Group, which includes PC chips, generated $7.7 billion in revenue, down 25% and significantly below the $8.89 billion consensus estimate among companies. Analysts surveyed by StreetAccount. Earlier this month, industry researcher Gartner speak PC shipments fell nearly 13% in the quarter. In one Presentations To investors, Intel flagged a “softening” of demand for PCs in the consumer and education markets, and said higher unit costs reduced the segment’s operating income.
Intel’s recently established AI and Data Center business, which includes server chips, accelerators, memory, and field-programmable gateway arrays, contributed $4.6 billion in revenue, down 16%, according to a report. after the StreetAccount consensus is 6.19 billion USD.
Intel’s new Network and Edge segment, which houses the company’s networking products, generated $2.3 billion in revenue, up 11%, and barely above the 2.27 StreetAccount consensus. billion dollars.
During the Intel quarter launched Habani Gaudi2 artificial intelligence training chips compete with Nvidia’s Graphics card A100. And Intel appeal to the National Assembly moving forward with federal legislation to support the US semiconductor manufacturing industry, so they could proceed to build a plant in Ohio. Earlier on Tuesday, American House passed the Science and Chips Actbilled President Joe Biden.
Excluding the after-hours move, Intel stock is down about 23% so far in 2022, while the S&P 500 is down less than 15% year-over-year.
Executives will discuss the results with analysts in a conference call that begins at 5 p.m. ET.
This story is evolving. Please check back for updates.
