Intel Reports Mixed Q1 Earnings, Gives Cautious Outlook in Current Quarter

In today’s article, technology company Intel announced first-quarter earnings that surpassed Wall Street predictions for profit per share but fell short on revenue. The corporation also provided a less than optimistic forecast for the current quarter during its report. As a result of this news, shares in the business decreased by 8% after hours trading.
In contrast to consensus expectations based on LSEG figures published at the end of March: Intel predicts that it will earn ten cents per share and generate $13 billion in revenue for Q2 (the second quarter) when midpoints are taken into account; this is less than what analysts had projected ($0.25/share). In terms of the prior financial period, Intel experienced a net loss of $400 million or nine cents per share during Q1 2023 as opposed to last year’s deficit of $2.8 billion and sixty-six cent losses for each stock (per share) respectively. The corporation reported total revenue in the amount of $12.7 billion, which is a 9% increase from one year ago ($11.7 billion).
During an earnings call with investors, Intel’s CEO Pat Gelsinger urged attendees to focus on the company’s long-term potential rather than short-term concerns. “We are among only two or three organizations in the world that can continue facilitating new-generation semiconductor technologies,” he claimed during the session. This recent quarterly report comes shortly after Intel divulged information regarding its separate subsidiary called ‘Intel Foundry,’ which is responsible for manufacturing chips and has distinct costs and sales figures associated with it. During Q1 2023, this division reported $4.4 billion in revenue (a decrease of ten percent year over year), while also reporting an operating loss totaling $2.5 billion during the quarter under discussion here today. In contrast to Intel’s recent report, which indicated that its foundry had generated a $7 billion operating deficit for 2023 as reported previously in April.
The biggest revenue-generator continues to be Intel’s Client Computing division (which is responsible for producing chips used primarily on PCs and laptops). These divisions accounted for total sales of approximately $7.5 billion during the most recent quarter, representing a 31% increase from one year ago ($5.8 billion in Q1 2022). Intel’s Data Center & AI division also saw an uptick in revenue (up five percent to roughly $3 billion), despite ongoing competition for server sales with firms like Nvidia who manufacture specialized artificial intelligence chips as part of their product offerings.