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Chipmaker Intel beats fourth-quarter target, but outlook seriously bleak


chip manufacturer Intel (International Trade CentreLate Thursday, Intel’s fourth-quarter results beat Wall Street’s targets but missed expectations significantly. Intel shares plunged in intraday trading.




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The Santa Clara, California-based company had sales of $15.41 billion in 2017 and adjusted earnings of 54 cents per share. December quarterAnalysts surveyed by FactSet had expected Intel to earn 45 cents per share on sales of $15.16 billion; in the same period last year, Intel earned 10 cents per share on sales of $14.04 billion.

Intel’s fourth-quarter report marks Intel’s return to growth after eight consecutive quarters of year-over-year sales declines and seven consecutive quarters of year-over-year sales declines.

Intel expects first-quarter adjusted earnings per share of 13 cents on sales of $12.7 billion. However, analysts had forecast March quarter earnings of 34 cents per share on sales of $14.24 billion. In the same quarter last year, Intel lost 4 cents per share on sales of $11.72 billion.

According to generally accepted accounting principles (GAAP), Intel expects to lose 25 cents per share in the first quarter.

Intel Stock Has Recent Breakout

in after-hours trading Today’s stock marketIntel shares fell more than 8% to 45.52. In regular trading on Thursday, Intel shares rose 0.9% to close at 49.55.

On November 15, Intel stock price exceeded nine weeks Integrated model in a buy some According to 40.07 IBD Market Smith chart.

A recovery in its PC business drove Intel’s fourth-quarter results to better than expected. Revenue from the company’s client computing division grew 33% to $8.8 billion.

Intel’s overall revenue increased 10% year-on-year, as declines in data center and network chips offset growth in PC chips.

Fourth-quarter sales of Intel’s data center and artificial intelligence division fell 10% to $4 billion; sales of the network and edge business fell 24% to $1.5 billion.

Before the market opened, Intel announced OEM cooperation with contract chip manufacturers UMC (UMC) The two companies will collaborate to develop 12nm semiconductor process platforms to address high-growth markets at mature nodes, including mobile, communications infrastructure and networks.

Last September, Intel announced protocol with contract chip manufacturers Tower Semiconductor (scanning electron microscopeUnder the agreement, Intel will provide foundry services and 300mm wafer manufacturing capabilities to help Tower serve its customers worldwide.

The trend of chip stocks

Other semiconductor stocks reacting to Thursday’s earnings news include Intel split Mobile Eyes Global (MBLY) and European chip manufacturers STMicroelectronics (scanning tunneling microscope) Both companies reported fourth-quarter results before the market opened on Thursday.

Mobileye Delivery Fourth quarter numbers in line with its Preliminary results Available January 4th. However, its 2024 sales forecast is $1.9 billion, below expectations of $1.98 billion.

The maker of autonomous driving and driver-assistance technology had sales of $637 million in the December quarter and adjusted earnings of 28 cents per share. Compared with the same period last year, Mobileye’s revenue increased 4% and sales increased 13%.

STMicro reports better-than-expected results Fourth quarter financial report Roughly in line with sales. However, its guidance was on the soft side. The auto and industrial chip maker had sales of $4.28 billion in the December quarter and earned $1.14 per share. Its earnings were down 14% compared with the same period last year, while sales were down 3%.

STMicro forecast first-quarter sales of $3.6 billion, missing the consensus target of $4.08 billion.

Mobileye shares rose 1.2% to $27.95 on Thursday, while STMicro shares fell 0.8% to $45.60.

Intel stock has a mediocre composite rating

Intel stock ranks No. 10 among 32 stocks in IBD’s Semiconductor Manufacturing Group IBD inventory check.it has a mediocre IBD Comprehensive Rating 65 out of 99 points.

STMicro ranks seventh in the chipmaker group with an overall rating of 74.

At the same time, Mobileye ranks 16th in the IBD fabless semiconductor industry group, with a comprehensive rating of 63.

Follow Patrick Seitz on X (formerly Twitter): @IBD_PSeitz Read more stories about consumer technology, software and semiconductor stocks.

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