Intel (INTC) earnings report Q4 2023

From CNBC:

Intel shares fell in extended trading after the chipmaker issued a weak Q1 2024 outlook despite beating Wall Street estimates for its Q4 2023 earnings. The company posted a net income of $2.7 billion, compared to a net loss of $0.7 billion last year, and reported sales growth in the fourth quarter of 10%. Intel shares are up over 74% over the past year. The company’s largest division, Client Computing, reported $8.8 billion in fourth-quarter sales, up 33%.

LSEG consensus expectations for Intel’s Q4 earnings: Earnings per share were 54 cents adjusted, vs. 45 cents expected, and revenue was $15.4 billion vs. $15.15 billion expected. For the first quarter of fiscal 2024, Intel expects earnings per share of 13 cents on between $12.2 billion and $13.2 billion in sales, vs. LSEG expectations of 33 cents per share on $14.15 billion of revenue.

Intel’s CEO Pat Gelsinger said the company’s core businesses would be at the low end of the company’s seasonal range due to weakness in subsidiaries including Mobileye and its programmable chip unit, as well as revenue decreases from other spun-off or sold businesses. The company remains focused on catching up to Taiwan Semiconductor Manufacturing Company in its ability to offer manufacturing services to other companies, while also improving its own branded chips.

Intel’s Data Center and AI division saw sales decline 10% to $4 billion, including server CPUs and GPUs. The Network and Edge department, which sells parts for carriers and networking, reported $1.5 billion in sales, down 24% from last year. Intel expects its Data Center business to decline “double-digit” percentages sequentially in the first quarter versus the fourth quarter.



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