Intel just presented the results for the fourth quarter of its fiscal year 2022, which yields data that is not too favorable for the company. A) Yes, your income has gone down nothing less than 32% year-on-year. Between October and December, Intel has entered 14,000 million dollars, compared to the 14,400 million that were expected to enter. In addition, it has had a drop of 114% in net income, and none of its areas has managed to meet the expectations of analysts.
The company, like others in the sector, is accusing the difficulties that the chip market is going through, hit by the slowdown in the consumption of electronic devices, as well as by the drop in demand for equipment in companies. A situation that has led it not only to have lower-than-expected earnings, but also to earn only $0.10 per share in the reported quarter.
Intel’s Client Computing division has brought in $6.6 billion, about $800 less than expected. It is the one that has registered the most pronounced decrease in sales: 36%. As for Data Centers and Artificial Intelligence, it has been among the areas that have performed best in the period, with 4,300 million revenues compared to the 4,000 million expected. Even so, it has asked for 33% year-on-year of its income, which a year ago was $6.4 billion.
Intel’s expectations for the first quarter of this current year are not too good either. To begin with, it expects revenue of between $10.5 billion and $11.5 billion. Analysts expected forecasts of around 14,000 million dollars. Regarding the expected gross margin forecasts, the company is also going to fall short, since it expects them to reach 39%, and analysts were betting on 45.5%. Intel anticipates that its shares will not rise much in the period either: 0.15 dollars in these three months, instead of the 0.25 expected.
Despite the situation, the Intel CEO Pat Gelsingerhas tried to instil some optimism, noting that «Despite market and economic headwinds, we continued to make great progress on our strategic transformation in Q4, including advancing our roadmap and improving our operational structure and processes. In 2023, we will continue to make progress on short-term issues while pursuing our long-term commitments. Among them is offering products based on open and secure platforms, driven by manufacturing at scale«.
