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Intel stock sinks as early 2024 outlook comes up short

Jan 25, 2024 - cnbc.com
Intel's Q4 2023 results beat Wall Street estimates with earnings per share at 54 cents, compared to the expected 45 cents, and revenue at $15.4 billion, surpassing the expected $15.15 billion. However, the company's shares fell in extended trading due to a Q1 2024 outlook that fell short of analyst forecasts. Intel expects earnings per share of 13 cents on sales between $12.2 billion and $13.2 billion, compared to LSEG expectations of 33 cents per share on $14.15 billion of revenue. The company reported a net income of $2.7 billion, a significant improvement from the net loss of $0.7 billion last year.

Intel's sales grew by 10% in Q4 from $14.04 billion a year earlier, breaking a seven-quarter streak of declining revenue. The company continues to implement a five-year plan under CEO Pat Gelsinger, aiming to catch up with Taiwan Semiconductor Manufacturing Company in offering manufacturing services to other companies and improving its own branded chips. Despite a two-year slump, the PC industry, which includes Intel's largest division, Client Computing group, showed signs of growth with Intel reporting $8.8 billion in Q4 sales, up 33%.

Key takeaways:

  • Intel shares dropped after the company issued a Q1 2024 outlook that fell short of analyst forecasts, despite beating Wall Street estimates for the latest quarter.
  • Intel reported a net income of $2.7 billion, breaking a streak of seven quarters with declining revenue, and its shares are up over 74% over the past year.
  • Intel is focusing on a five-year plan to catch up to Taiwan Semiconductor Manufacturing Company in offering manufacturing services to other companies and improving its own branded chips.
  • Intel's largest division, Client Computing group, reported $8.8 billion in fourth-quarter sales, up 33%, while its second largest division, Data Center and AI, saw sales decline 10% to $4 billion.
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