Intel stock sinks as early 2024 outlook comes up short

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.

Intel stock sinks as early 2024 outlook comes up short

Key takeaways

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