Michelle Johnston Holthaus, Intel’s co-CEO and then executive vice president and general manager of the company’s Client Computing Group, holds a Intel Core Ultra processor as she speaks during the Intel AI Everywhere event in New York on Thursday, Dec. 14, 2023.
Victor J. Blue | Bloomberg | Getty Images
Intel issued disappointing quarterly guidance on Thursday, but reported earnings and revenue that topped estimates.
Here’s how the company did in the fourth quarter compared with LSEG estimates:
- Earnings per share: 13 cents adjusted vs. 12 cents expected
- Revenue: $14.26 billion vs. $13.81 billion expected
Intel’s revenue declined for a third straight quarter, decreasing 7% from a year earlier, according to a statement. The company’s net loss for the quarter totaled $126 million, or 3 cents per share, compared with net income of $2.67 billion, or 63 cents per share, in the same quarter a year ago.
It’s the chipmaker’s first earnings report since announcing the departure of Pat Gelsinger as CEO. Gelsinger, who took the help in CEO, had a brutal tenure, giving up market share to competitors and falling way behind in the artificial intelligence race while committing billions of dollars for manufacturing plants.
Intel appointed two interim co-CEOs, finance chief David Zinsner and Intel Products CEO Michelle Johnston Holthaus, to succeed Gelsinger.
“Dave and I are taking actions to enhance our competitive position and create shareholder value,” Johnston Holthaus was quoted as saying in Thursday’s release, which did not provide an update on Intel’s search for a new permanent leader.
Adjusted results exclude stock-based compensation, acquisition-related adjustments and interest on an annulled fine from the European Commission.
Intel said it will report breakeven profit for the first quarter, with revenue of between $11.7 billion and $12.7 billion. The LSEG consensus was $12.87 billion in revenue and 9 cents in adjusted earnings per share.
Management pointed to seasonality, economic conditions and competition, and said clients are digesting inventory.
Intel’s Client Computing Group, which sells PC chips, produced $8.02 billion in revenue in the fiscal fourth quarter. Revenue was down 9% year over year but above the $7.84 billion consensus among analysts polled by StreetAccount.
The Data Center and Artificial Intelligence segment, which provides processors to cloud providers and corporate server farms, generated $3.39 billion in revenue. That was down 3% and inline with StreetAccount’s $3.38 billion consensus.
Intel’s Network and Edge unit contributed $1.62 billion in revenue, up 10% and above the $1.5 billion consensus from StreetAccount.
During the quarter, Intel finalized a $7.86 billion U.S. government grant to support manufacturing in four states.
The company expects volume chip production based on its 18A process technology in the second half of 2025, according to a presentation. Next-generation laptop chips carrying the code name Panther Lake will launch in the second half of the year, Intel said.
Before Thursday’s close Intel shares were down 1% for the year, while the S&P 500 index was up about 3%.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
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