Intel Reports Mixed Q4 Results Amid Leadership Transition

NEW YORK — Intel Corporation reported mixed financial results for its fourth quarter on Thursday, surpassing revenue and earnings estimates but issuing disappointing guidance for the upcoming quarter. The announcement came during a pivotal leadership transition following the departure of CEO Pat Gelsinger.

The chipmaker posted revenue of $15.4 billion, a 7% decline from the same period last year, marking its third consecutive quarterly drop. Intel reported a net loss of $126 million, or 3 cents per share, compared to a net income of $2.67 billion, or 63 cents per share, in the fourth quarter of 2022. Adjusted earnings, which exclude certain expenses, were 54 cents per share, beating analysts’ expectations.

Intel’s leadership shakeup saw the appointment of interim co-CEOs David Zinsner, the company’s finance chief, and Michelle Johnston Holthaus, head of Intel’s Client Computing Group. “Dave and I are taking actions to enhance our competitive position and create shareholder value,” Johnston Holthaus said in a statement.

The company’s Client Computing Group, which focuses on PC chips, generated $8.02 billion in revenue, down 9% year-over-year but above analyst estimates. Meanwhile, the Data Center and Artificial Intelligence segment reported $3.39 billion in revenue, a 3% decline, while the Network and Edge unit saw a 10% increase to $1.62 billion.

Intel’s outlook for the first quarter of 2024 projects breakeven earnings per share and revenue between $11.7 billion and $12.7 billion, falling short of the $12.87 billion consensus estimate. Management attributed the cautious guidance to seasonality, economic conditions, and competitive pressures.

During the quarter, Intel secured a $7.86 billion grant to bolster domestic manufacturing across four states. The company has faced challenges in recent years, including losing market share to competitors and lagging in the artificial intelligence race.

Intel shares remained flat for the year prior to the earnings release, while the S&P 500 index gained approximately 3%. Executives will discuss the results further during a conference call scheduled for 5 p.m. ET.