{"id":1826810,"date":"2023-01-28T07:05:29","date_gmt":"2023-01-28T12:05:29","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1826810"},"modified":"2023-01-28T07:11:21","modified_gmt":"2023-01-28T12:11:21","slug":"intel-shares-plunge-on-disappointing-earnings-report-weak-year-ahead-forecast","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/intel-shares-plunge-on-disappointing-earnings-report-weak-year-ahead-forecast\/","title":{"rendered":"Intel Shares Plunge on Disappointing Earnings Report, Weak Year Ahead Forecast"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fintel-shares-plunge-on-disappointing-earnings-report-weak-year-ahead-forecast%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1826810&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>The stock of the chip giant <a href=\"https:\/\/www.theepochtimes.com\/t-intel\">Intel<\/a> The stock plummeted on January 26 following disappointing fourth-quarter results. <a href=\"https:\/\/www.theepochtimes.com\/t-results\">These are the results<\/a> For the first quarter in 2023, we expect more losses.<\/p>\n<p>Intel\u2019s stock price fell nearly 10 percent in extended trading after the\u00a0Santa Clara, California-headquartered giant <a href=\"https:\/\/www.intc.com\/news-events\/press-releases\/detail\/1600\/intel-reports-fourth-quarter-and-full-year-2022-financial\">reported<\/a> fourth-quarter revenue of $14 billion, down\u00a032 percent year over year.<\/p>\n<p>Market analysts had anticipated revenue of\u00a0$14.4 billion for the quarter.<\/p>\n<p>Meanwhile, the company reported\u00a0a fourth-quarter loss of $664 million, or $0.16 a share, compared to a\u00a0profit of $4.62 billion in the year-ago quarter. Wall Street analysts had been <a href=\"https:\/\/www.bizjournals.com\/sanjose\/news\/2023\/01\/26\/intel-reports-4th-quarter-earnings.html\">expecting<\/a> a loss of $278 million.\u00a0Full-year revenue wasn\u2019t much better, at $63.1 billion, down 20 percent\u00a0year over year.<\/p>\n<p>Looking ahead, Intel forecasted first-quarter revenue of $10.5\u201311.5 billion, or\u00a0an adjusted loss of $0.15 a share,\u00a0down 40 percent year over year.<\/p>\n<figure id=\"attachment_4668183\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/08\/16\/Pat-Gelsinger-1200x800.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4668183\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/Pat-Gelsinger-600x400-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"400\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4668183\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/Pat-Gelsinger-600x400-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> Intel CEO Pat Gelsinger speaks during a panel session of the World Economic Forum in Davos, Switzerland, on May 25, 2022. (Hollie Adams\/Bloomberg via Getty Images)<\/figure>\n<h2>Year Ahead Outlook Looking Dismal<\/h2>\n<p>Analysts surveyed by FactSet had <a href=\"https:\/\/www.marketwatch.com\/amp\/story\/intel-reports-quarterly-loss-forecasts-another-stock-drops-11674767834\">anticipated<\/a> adjusted first-quarter <a href=\"https:\/\/www.theepochtimes.com\/t-earnings\">earnings<\/a> of $0.25 a share on revenue of $13.93 billion. Just a year ago, Intel was reporting\u00a0$1.13 in profit per share, marking a significant decline for the company.<\/p>\n<p>Meanwhile, the gross\u00a0margin for the first quarter is expected to be 34.1 percent, according to the company, down from 55.2 percent in the same quarter in 2021.<\/p>\n<p>In its report to investors,\u00a0CFO David Zinsner said the company aims to\u00a0cut $3 billion in costs this year and \u201cset the stage\u201d to reduce costs by\u00a0a total of $8\u201310 billion by the end of 2025.<\/p>\n<p>The company <a href=\"https:\/\/www.theepochtimes.com\/tech-firms-leading-job-cuts-in-corporate-america_4963906.html\">said<\/a> earlier this month that it would start making layoffs later this year as part of its cost-reduction efforts, but hasn\u2019t said how many employees will be impacted.<\/p>\n<p>Intel also acknowledged that 2022 had been a turbulent year, but still cast an optimistic note for the year ahead.<\/p>\n<p>\u201cDespite the economic and market headwinds, we continued to make good progress on our strategic transformation in the fourth quarter, including advancing our product roadmap and improving our operational structure and processes to drive efficiencies while delivering at the low-end of our guided range,\u201d said Pat Gelsinger, Intel\u2019s CEO.<\/p>\n<p>\u201cIn 2023, we will continue to navigate the short-term challenges while striving to meet our long-term commitments, including delivering leadership products anchored on open and secure platforms, powered by at-scale manufacturing and supercharged by our incredible team,\u201d\u00a0Gelsinger added.<\/p>\n<p>Intel didn\u2019t provide full-year guidance for 2023, citing economic uncertainty.<\/p>\n<figure id=\"attachment_4225244\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/01\/20\/AMD-Wafer-1200x792.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4225244\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/AMD-Wafer-600x396-1.jpg\" alt=\"AMD Wafer\" width=\"600\" height=\"396\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4225244\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/AMD-Wafer-600x396-1.jpg\" alt=\"AMD Wafer\" width=\"600\" height=\"396\" \/><\/noscript><\/figcaption><\/a> An AMD employee presents a 200-millimetre wafer of Advanced Micro Devices (AMD), the U.S. maker of computer chips, in Dresden, eastern Germany, on Oct. 24, 2006. (Norbert Millauer\/DDP\/AFP via Getty Images)<\/figure>\n<h2>Intel Has Competition<\/h2>\n<p>The report comes amid a slowing of the PC and server markets following a reopening of the economy after pandemic-induced lockdowns that led to a rise in remote work.<\/p>\n<p>The result has left computer makers with an oversupply of chips, but fewer sales.<\/p>\n<p>Gelsinger told analysts on a call (<a href=\"https:\/\/d1io3yog0oux5.cloudfront.net\/_2cead9b6413a1a91de449423742eea20\/intel\/db\/887\/8894\/prepared_remarks\/Q4+22+Investor+Call+Prepared+Remarks.pdf\">pdf)<\/a> on Thursday that he expects PC sales during 2023 to be around\u00a0270\u2013295 million units, although Zinsner noted that \u201cgiven continued uncertainty and demand signals we see for the first quarter, we expect the lower end of that range as a more likely outcome.\u201d<\/p>\n<p>\u201cImportantly, PC usage data remains strong, reinforcing that use-cases brought on by COVID are persistent even as the economy has reopened,\u201d Gelsinger noted.<\/p>\n<p>Despite a turbulent 2022,\u00a0Intel still dominates the markets for PC and server processing chips, with a market share greater than 70 percent, according to calculations by tech research firm IDC. However, in 2017, Intel held a 90 percent market share.<\/p>\n<p>\u201cSomeone going from 1 percent to 13 percent is significant. It tells you that now there\u2019s a viable second competitor in the server processor market, who has momentum and is gaining momentum,\u201d IDC analyst Shane Rau <a href=\"https:\/\/www.reuters.com\/technology\/stumbling-intel-seeing-amd-gain-ground-says-it-will-recover-balance-2023-01-27\/\">told<\/a> Reuters.<\/p>\n<p>That competitor is Advanced Micro Devices (AMD), according to Reuters, with\u00a0market capitalization\u00a0roughly the same as Intel. AMD saw its stock jump earlier this week after Barclays <a href=\"https:\/\/www.thestreet.com\/markets\/amd-stock-extends-gains-on-barclays-upgrade-price-target-boost\">upgraded<\/a>\u00a0its shares\u00a0to \u201coverweight\u201d from \u201cequal weight\u201d with a price\u00a0target of $85, citing the chipmaker\u2019s increasing lead over rival Intel.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The stock of the chip giant Intel The stock plummeted on January 26 following disappointing fourth-quarter results. These are the results For the first quarter in 2023, we expect more losses. Intel\u2019s stock price fell nearly 10 percent in extended trading after the\u00a0Santa Clara, California-headquartered giant reported fourth-quarter revenue of $14 billion, down\u00a032 percent year &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1826813,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[7978,11333,16788,7526,4889,3819,4790,7723],"class_list":["post-1826810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-disappointing","tag-earnings","tag-forecast","tag-intel","tag-plunge","tag-report","tag-shares","tag-weak"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1826810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1826810"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1826810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1826813"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1826810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1826810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1826810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}