Intel shares drop on weak quarterly results and expectations for another quarter of losses

Intel shares slid by arsenic overmuch arsenic 7% successful extended trading connected Thursday aft the chipmaker issued fourth-quarter results that failed to conscionable analysts' estimates and gave a weaker-than-expected forecast.

Here's however the institution did:

• Earnings: 10 cents per share, adjusted, vs. 20 cents per stock arsenic expected by analysts, according to Refinitiv.
• Revenue: $14.04 billion, vs. $14.45 cardinal arsenic expected by analysts, according to Refinitiv.

Intel's gross declined 32% twelvemonth implicit twelvemonth successful the 4th that ended Dec. 31, according to a statement. It's the 4th consecutive 4th of falling income arsenic the marketplace for idiosyncratic computers retreats from the Covid boom.

The institution recorded a $664 nett loss, compared with a nett of $4.62 cardinal successful the year-ago quarter.

Investors tin expect much symptom successful the archetypal quarter. Intel called for adjusted nett nonaccomplishment of 15 cents per stock connected $10.5 cardinal to $11.5 cardinal successful revenue. Analysts polled by Refinitiv had expected net of 24 cents per stock and $13.93 cardinal successful revenue.

"In 2023, we volition proceed to navigate the short-term challenges portion striving to conscionable our semipermanent commitments, including delivering enactment products anchored connected unfastened and unafraid platforms, powered by at-scale manufacturing and supercharged by our unthinkable team," Intel CEO Pat Gelsinger said successful the statement.

In the 4th quarter, Intel's Client Computing Group, which includes PC chips, contributed $6.63 cardinal successful revenue, down 36% and beneath the $7.68 cardinal statement among analysts polled by StreetAccount. Gartner said the PC marketplace shrank much sharply than immoderate 4th since it began pursuing the manufacture successful the 1990s.

The Datacenter and AI segment, consisting of server chips, representation and field-programmable gross arrays, recorded $4.30 cardinal successful revenue, down 33% but inactive much than the $4.17 cardinal statement from StreetAccount.

Intel's Network and Edge segment, containing networking products, posted $2.06 cardinal successful revenue. That's 1% little than successful the year-ago quarter, and little than the $2.26 cardinal StreetAccount consensus.

During the quarter, Mobileye, an autonomous driving hardware and bundle supplier that Intel acquired for $15.3 cardinal successful 2017, debuted connected the Nasdaq. Intel inactive controls astir of the voting powerfulness of Mobileye's communal stock.

Intel banal has slid astir 42% successful the past year, portion the S&P 500 scale is disconnected by 7% implicit the aforesaid period.

Executives volition sermon the results with analysts connected a league telephone starting astatine 5 p.m. ET.

This is breaking news. Please cheque backmost for updates.

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