Intel Fourth-Quarter Report
Intel (NASDAQ: INTC) reported a fourth-quarter revenue decline of 4% to $13.7 billion, surpassing estimates of $13.4 billion. Adjusted earnings per share increased from $0.13 to $0.15, exceeding expectations of $0.08. However, the company issued weak guidance for the first quarter, projecting revenue between $11.7 billion and $12.7 billion, which indicates a 4.7% decrease at the midpoint compared to the previous year. Moreover, it anticipates break-even adjusted earnings per share for Q1, down from $0.13 a year prior.
Despite a significant share price increase of over 150% since last August, Intel’s stock dropped 16% on the day following the earnings release due to disappointing guidance. CFO David Zinsner warned that supply constraints will impact Q1 performance, with expectations of the lowest available supply before improvement in subsequent quarters. Analysts are projecting single-digit revenue growth up until 2027, signaling a lengthy turnaround period for the company.
