Intel's fourth-quarter earnings report topped Wall Street's projections, despite concerns regarding the current quarter's performance. The company attributed the lower guidance to various factors, including seasonality, economic conditions, and competition.
Intel 's fourth-quarter earnings report exceeded Wall Street's expectations, despite weaker-than-anticipated guidance for the current quarter. The company reported a net loss of $126 million, or 3 cents per share, compared to a net income of $2.67 billion, or 63 cents per share, in the same quarter last year.
This marks the first earnings report since the departure of CEO Pat Gelsinger, who left the company after a challenging tenure marked by declining market share, lagging performance in the artificial intelligence race, and substantial investments in manufacturing facilities. During a Thursday press release, interim CEO David Zinsner stated, 'Dave and I are taking actions to enhance our competitive position and create shareholder value.' Adjusted earnings exclude stock-based compensation, acquisition-related adjustments and interest on an annulled fine from the European Commission. Intel projected breakeven profit for the first quarter, with revenue ranging from $11.7 billion to $12.7 billion. Analysts surveyed by the London Stock Exchange (LSEG) anticipated revenue of $12.87 billion and adjusted earnings per share of 9 cents. Management attributed the lower guidance to seasonality, economic conditions, and competition, noting that clients are currently adjusting their inventory levels. Intel's Client Computing Group, responsible for PC chip sales, generated $8.02 billion in revenue during the fourth quarter, down 9% year-over-year but exceeding analysts' consensus of $7.84 billion. The Data Center and Artificial Intelligence segment, which supplies processors to cloud providers and corporate servers, reported $3.39 billion in revenue, a 3% decline but in line with the $3.38 billion consensus. Intel's Network and Edge unit contributed $1.62 billion in revenue, a 10% increase surpassing the $1.5 billion consensus. Prior to Thursday's market close, Intel shares had remained flat for the year, contrasting with the S&P 500 index's approximately 3% gain.
INTEL EARNINGS GUIDANCE CEO COMPETITON ARTIFICIAL INTELLIGENCE
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