Intel issues disappointing guidance for Q1

Intel Corp (NASDAQ: INTC) is trading down in extended hours on Thursday even though it reported strong results for the fourth financial quarter.

Intel stock hit on downbeat guidance

The stock is in the red because $INTC issued disappointing guidance for the future.

Intel now forecasts $12.2 billion to $13.2 billion in revenue on up to 13 cents of per-share earnings in its current fiscal quarter. Analysts, in comparison, were at $14.5 billion and 33 cents, respectively. Still, David Zinsner – its chief of finance said in a press release today:

Earlier this month, Intel CEO Pat Gelsinger said AI PCs will be a “big thing” for Intel Corporation as Invezz reported here.

Notable figures in Intel Q4 earnings release

• Earned $2.7 billion versus the year-ago $0.7 billion loss
• Per-share earnings also climbed from -16 cents to 63 cents
• Adjusted EPS printed at 54 cents as per the press release
• Revenue jumped 10% year-over-year to $15.4 billion
• Consensus was 45 cents a share on $15.15 billion revenue

Intel wants to be producing about half of its sophisticated chips in the U.S. and Europe by the end of this decade. CEO Pat Gelsinger said on Thursday:

What else was noteworthy?

Other notable figures in the earnings report include a 33% increase in client-computing revenue to $8.8 billion – ahead of Street estimates.  

Intel did, however, see its data centre and AI revenue tank 10% to a lower-than-expected $4.0 billion. Mobileye grew 13% in the fourth quarter but network and edge revenue took a 24% hit.

The Nasdaq-listed firm improved its gross margin by 650 basis points year-on-year to 45.7% in its fiscal Q4. Wall Street currently has a consensus “hold” rating on $INTC.