Intel Issues Weak Forecast, But Beats on Fourth-Quarter Results

Intel Issued disappointing Quarterly Guidance on Thursday, but reported earnings and revenue that topped estimates. Shares was up 3% after hours.

Here’s how the company did in the fourth Quarter Compared With Lseg Estimates:

• Earnings per share: 13 cents adjusted vs. 12 cents Expected
• Revenue: $ 14.26 billion vs. $ 13.81 billion expected

Intel’s Revenue declined for a third straight quality, decreasing 7% from a year earlier, according to a statementThe company’s net loss for the Quarter Totled $ 126 Million, or 3 Centles Per Share, Compared With Net Income of $ 2.67 billion, or 63 cents per share, in the same Quarter a year.

It is the chipmaker’s first earnings report since announcing the departure of pat gelsinger as ceo. Gelsinger, who took the helm as CEO, had a difficult tenure, giving up market share to competitors and falling way behind in the artificial intelligence race while committing billions of dollars for manufacturing plants.

Intel Appointed Two Interim Co-CEOS, Finance Chief David Zinsner and Intel Products CEO Michelle Johnston Holthaus, to successed gelsinger.

“Dave and I are taking actions to enhance our competitive position and create shareholder value,” Johnston Holdhaus was quoted saying in Thursday’s release.

The search for a new ceo is progressing, but there is noting new to report, zinsner said on a conference call with analysts.

Johnston Holthaus Said the company has decided to only use planned Falcon Shores Artificial Intelligence Process for Servers as a Test Chip and Won’T Be Selling Iting Iting Its. In 2023, Intel said it would focus on Falcon Shores after canceling Its Rialto Bridge Graphics Processing Unit for servers.

Intel will now focus on a product called jaguar shores “to address the ai data center more broadly,” She said.

Adjusted Results Exclude Stock-Based Compensation, Acquisition-Related Adjustments and Interest on Annulled Fine from the European Commission.

Intel Said it will report Breakeven Profit for the First Quarter, with Revenue of Between $ 11.7 Billion and $ 12.7 Billion. The Lseg Consensus was $ 12.87 billion in Revenue and 9 Kents in Adjusted Earnings Per Share.

Management pointed to Seasonality, Economic Conditions and Competition, and Said Clients are digging inventory. The Prospect of tariffs adds to the uncertainty, zinsner said.

Intel’s Client Computing Group, Which Sells PC Chips, Produced $ 8.02 Billion in Revenue in the Fiscal Fourth Quarter. Revenue was down 9% Year Over Year But Above The $ 7.84 billion consensus among analysts pollled by streetaccount.

“While Difential to Quantify, We Suspect a Port of Q4 Revenue Upside was due to Customers Hedging Against Potential Tariffs,” Zinsner Said.

The data center and artificial intelligence segment, which provides providers to cloud provides and corporate server farms, generated $ 3.39 billion in revenue. That was down 3% and in line with streetaccount’s $ 3.38 billion consensus.

Intel’s Network and Edge Unit Contributed $ 1.62 Billion in Revenue, Up 10% and Above The $ 1.5 Billion Consensus from Streetaccount.

During the Quarter, Intel Finalized A $ 7.86 Billion Us Government Grant To support manufacturing in four states.

The company expects volume chip production based on its 18A process technology in the second half of 2025, according to a presentationNext-Generation Laptop Chips Carrying The Code Name Panther Lake will launch in the second half of the year, Intel said.

In October, CNBC Reported that Intel Was Looking to sell At Least a Minority Stake in Altera, its business that sells field-progressable gate array chips. Intel Acquired Altera for $ 14.5 Billion in 2015.

“We are, you know, far along the process of alterra,” Zinsner said. “I suspect that by the time we get to earnings next, Next Quarter, We’ll have some something to say there that will help generate some cash that we can use to deliver.”

Before Thursday’s Close, Intel Shares was down 1% for the year, while the s & p 500 index was up about 3%.

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