Intel (INTC) earnings report Q2 2023

Intel CEO Pat Gelsinger stands in front of a cathedral in the German city of Magdeburg on Nov. 12, 2022. During his visit, Gelsinger also visited the planned site of the Intel Gigafactory in the Eulenberg industrial park. /dpa-Zentralbild/dpa (Photo by Peter Gercke/picture alliance via Getty Images)

Peter Gercke | Picture Alliance | Getty Images

Intel reported second-quarter earnings on Thursday, showing a return to profitability after two straight quarters of losses and issuing a stronger-than-expected forecast.

The stock rose 7% in extended trading.

Here’s how Intel did versus Refinitiv consensus expectations for the quarter ended July 1:

  • Earnings per share: 13 cents, adjusted, versus a loss of 3 cents expected by Refinitiv.
  • Revenue: $12.9 billion, versus $12.13 billion expected by Refinitiv.

For the third quarter, Intel expects earnings of 20 cents per share, adjusted, on revenue of $13.4 billion at the midpoint, versus analyst expectations of 16 cents per share on $13.23 billion in sales.

Intel posted net income of $1.5 billion, or 35 cents per share, versus a net loss of $454 million, or a loss of 11 cents per share, in the same quarter last year.

Revenue fell 15% to $12.9 billion from $15.3 billion a year ago, marking the sixth consecutive quarter of declining sales.

Intel CEO Pat Gelsinger said on a call with analysts the company still sees “persistent weakness” in all segments of its business through year-end, and that server chip sales won’t recover until the fourth quarter. He also said that cloud companies were focusing more on securing graphics processors for artificial intelligence instead of Intel’s central processors.

David Zinsner, Intel’s finance chief, said in a statement that part of the reason the report was stronger than expected was because of the progress the company has made toward slashing $3 billion in costs this year. Earlier this year, Intel slashed its dividend and announced plans to save $10 billion per year by 2025, including through layoffs.

“We have now exited nine lines of business since [Gelsinger] rejoined the company, with a combined annual savings of more than $1.7 billion,” said Zinsner.

Here’s how Intel’s business units performed:

  • Revenue in Intel’s Client Computing group, which includes the company’s laptop and desktop processor shipments, fell 12% to $6.8 billion. The overall PC market has been slumping for over a year.
  • Intel’s server chip division, which is reported as Data Center and AI, saw sales decline 15% to $4 billion.
  • Intel’s Network and Edge division, which sells networking products for telecommunications, recorded a 38% decline in revenue to $1.4 billion.
  • Mobileye, a publicly traded Intel subsidiary focusing on self-driving cars, saw sales slip 1% on an annual basis to $454 million.
  • Intel Foundry Services, the business that makes chips for other companies, reported $232 million in revenue.

Source link

Denial of responsibility! galaxyconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave A Reply

Your email address will not be published.