Intel CEO Pat Gelsinger holds an artificial intelligence processor while speaking at the Computex conference in Taipei, Taiwan, June 4, 2024.
Annabelle Chi | Bloomberg | Getty Images
Intel Shares of the company rose 15% in after-hours trading on Thursday after the chipmaker reported better-than-expected revenue and issued quarterly guidance that topped estimates.
Here’s how the company compares to the LSEG consensus:
- Earnings per share: Adjusted loss of 46 cents
- income: US$13.28 billion, expected US$13.02 billion
According to a statement, Intel’s revenue fell 6% year-over-year in the quarter ended September 28. The company had a net loss of $16.99 billion, or $3.88 a share, compared with a net profit of $310 million, or 7 cents a share, a year earlier.
As part of its cost-cutting plan, Intel recognized $2.8 billion in restructuring charges during the quarter. There are also $15.9 billion in impairment charges.
Intel fell into a long-term slump as it lost market share in its core business and failed to conquer artificial intelligence. CEO Pat Gelsinger revealed that this quarter plans to transform the company’s foundry business into independent subsidiarya move that will provide external financing options.
CNBC reports that Intel Hire a consultant Protect yourself from activist investors. In late September, there was news that Qualcomm Contact Intel to discuss possible acquisition.
Revenue from the Client Computing Group, which sells PC chips, was $7.33 billion, down about 7% year-over-year and below the $7.39 billion consensus among analysts polled by StreetAccount.
Revenue from the data center and artificial intelligence division reached $3.35 billion, up about 9%, higher than StreetAccount’s forecast of $3.17 billion.
Intel expects adjusted third-quarter earnings of 12 cents per share on revenue between $13.3 billion and $14.3 billion. Analysts had expected adjusted earnings of 8 cents per share on revenue of $13.66 billion.
This quarter, Intel announced the launch of Xeon 6 Server processor and Gaudi artificial intelligence accelerator.
Intel shares were down about 57% in 2024 as of Thursday’s close, while the S&P 500 was up 20%.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
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