Intel CEO Pat Gelsinger holds an artificial intelligence processor while speaking at the Computex conference in Taipei, Taiwan, June 4, 2024.
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Intel Shares of the company rose 9% in after-hours trading Thursday after the chipmaker reported better-than-expected profits and issued higher-than-expected quarterly guidance.
Here’s how the company compares to the LSEG consensus:
- Earnings per share: Adjusted 17 cents, expected loss 2 cents
- income: US$13.28 billion, expected US$13.02 billion
According to Intel data, Intel’s revenue fell 6% year-on-year in the third fiscal quarter ended September 28. statement. The company had a net loss of $16.99 billion, or $3.88 a share, compared with a net profit of $310 million, or 7 cents a share, a year earlier.
As part of its cost-cutting plan, Intel recognized $2.8 billion in restructuring charges during the quarter. Additionally, there was an impairment charge of $15.9 billion, in part due to accelerated depreciation of Intel’s 7 process node manufacturing assets and goodwill impairment in the Mobileye segment.
Intel fell into a long slump as it lost market share in its core business and failed to conquer artificial intelligence. Intel this quarter revealed plans to transform the company’s foundry business into an independent subsidiary, a move that would provide outside financing options.
CNBC reports that Intel has hired advisers to protect itself from activist investors. In late September, there was news that Qualcomm Intel was approached about a possible acquisition.
The Client Computing Group, which sells PC chips, reported third-quarter revenue of $7.33 billion, down about 7% year-on-year and below the consensus estimate of $7.39 billion among analysts polled by StreetAccount.
Customers reduced inventories during the season after addressing supply shortages.
“We expect inventory normalization to continue into the first half of next year,” Intel Finance Chief Dave Zinsner said on a conference call with analysts.
Revenue from the data center and artificial intelligence division reached $3.35 billion, up about 9%, higher than StreetAccount’s forecast of $3.17 billion.
Intel expects adjusted third-quarter earnings of 12 cents per share on revenue between $13.3 billion and $14.3 billion. Analysts had expected adjusted earnings of 8 cents per share on revenue of $13.66 billion.
This quarter, Intel announced the launch of Xeon 6 Server processor and Gaudi artificial intelligence accelerator.
Intel CEO Pat Gelsinger said on a conference call that Gaudi’s adoption is slower than Intel expected and the company will not be able to meet its 2024 revenue target of $500 million.
Intel shares were down about 57% in 2024 as of Thursday’s close, while the S&P 500 was up 20%.
This is breaking news. Please check back for updates.
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