Intel Corporation has announced a decline in its revenue for the third consecutive quarter, with a 7% drop from the previous year. The report reveals that Intel's revenue was down 9% year over year, yet it exceeded the $7.84 billion consensus among analysts polled by StreetAccount. Despite this, the company issued a weaker-than-expected quarterly guidance on Thursday, pointing to challenges ahead.
Intel's Client Computing Group generated $8.02 billion in revenue during the fiscal fourth quarter, while the Data Center and Artificial Intelligence segment brought in $3.39 billion. This latter figure represents a 3% decrease, aligning closely with StreetAccount's $3.38 billion consensus. Meanwhile, the Network and Edge unit saw a positive turn, contributing $1.62 billion, which was a 10% increase and above the $1.5 billion consensus.
The company's adjusted results, which exclude stock-based compensation and certain acquisition-related adjustments, also took into account interest related to an annulled European Commission fine. The net loss for the quarter stood at $126 million, or 3 cents per share, starkly contrasting with the net income of $2.67 billion, or 63 cents per share, reported in the same quarter the previous year.
Intel has taken significant strategic steps by appointing two interim co-CEOs. Finance chief David Zinsner and Intel Products CEO Michelle Johnston Holthaus will succeed Gelsinger in guiding the company during this transitional phase. Holthaus emphasized their commitment to strengthening Intel's competitive stance.
"Dave and I are taking actions to enhance our competitive position and create shareholder value," – Michelle Johnston Holthaus
Despite the disappointing quarterly guidance, Intel's fourth-quarter results surpassed expectations. Executives plan to discuss these outcomes further with analysts during a conference call scheduled for 5 p.m. ET.
Looking ahead, Intel forecasts breakeven profit for the first quarter, anticipating revenue between $11.7 billion and $12.7 billion. This projection falls short of the LSEG consensus of $12.87 billion in revenue and 9 cents per share in adjusted earnings. However, in a move towards strengthening its manufacturing capabilities, Intel finalized a $7.86 billion U.S. government grant to support operations across four states.