NewsTech News

Intel’s second-quarter 2022 earnings report was disappointing, and its stock price fell more than 10% after the market

Intel's second-quarter 2022 earnings report was disappointing, and its stock price fell more than 10% after the market
Intel's second-quarter 2022 earnings report was disappointing, and its stock price fell more than 10% after the market
Advertisements

Processor leader Intel announced its second-quarter 2022 financial report early this morning, Taipei time. Affected by the poor economic environment, the decline in market demand, the sharp decline in PC sales, and the severe recession in profits, coupled with a conservative outlook for the future, a downward revision for the whole year was made. In terms of revenue, Intel’s US stock price fell by 10% after the market, and ended at $39.71 per share, down $3.3 or 8.31%.

 Intel's second-quarter 2022 earnings report was disappointing, and its stock price fell more than 10% after the market

Advertisements

Intel pointed out that revenue in the second quarter was $15.321 billion, a 22% decline from the same period in 2021 and also below market expectations of $17.92 billion. Net loss for the quarter was $454 million, down 109% from the same period in 2021. Gross profit margin fell to 36.5% from 50.4% in the first quarter. EPS was a loss of $0.11 per share, down 109% from EPS of $1.24 per share in the same period in 2021.

 Intel's second-quarter 2022 earnings report was disappointing, and its stock price fell more than 10% after the market

Intel CEO Pat Gelsinger said in a meeting with analysts, “The delay in the launch of new processors in data centers, coupled with continued supply chain conditions that exacerbated weak PC sales, were the main reasons for the lower-than-expected performance. Intel’s lower-than-expected performance was mainly dragged down by the economy. , as well as the failure to launch a good product on schedule has also contributed to this quarter’s performance below the bar set for the company and shareholders, and we are disappointed. But we haven’t seen such inventory in a decade and believe this is the bottom.”

Advertisements

Chief Financial Officer David Zinsner pointed out that the pace of PC purchases by small and medium-sized enterprises has slowed, but the industry-wide trend remains good. Still, the latest forecasts factor in a weaker economy, which could cause companies to delay PC refresh cycles.

 Intel's second-quarter 2022 earnings report was disappointing, and its stock price fell more than 10% after the market

From the revenue analysis of each business unit, the revenue of the client computing business unit was US$7.7 billion, a decrease of 25% from the same period in 2021 and lower than the market expectation of US$8.89 billion. The Data Center and Artificial Intelligence business segment reported revenue of $4.6 billion, a 16 percent decrease from the same period in 2021 and below market expectations of $6.19 billion. The Network and Edge Computing business unit generated revenue of $2.3 billion, an increase of 11% from the same period in 2021, beating market expectations of $2.27 billion. Accelerated Computing Systems and Graphics revenue was $186 million, up 5% from the same period in 2021. The revenue of the Mobileye division of the autonomous driving business was US$460 million, an increase of 41% compared with the same period in 2021, and the revenue of the foundry services division was US$122 million, a decrease of 54% compared with the same period in 2021.

 Intel's second-quarter 2022 earnings report was disappointing, and its stock price fell more than 10% after the market

For the third quarter of 2022, Intel expects revenue to be between $15 billion and $16 billion, with an adjusted EPS of $0.35 per share, which is lower than analysts’ estimates of $18.62 billion in revenue per share. EPS adjusted $0.86 performance. Intel also lowered its full-year 2022 revenue forecast to $65 billion to $68 billion, lower than the $76 billion forecast and the $74.34 billion expected by market analysts. Adjusted EPS of $2.3 per share also missed estimates of $3.6 and matched analysts’ estimates of $3.42. In terms of capital expenditure, considering the economic conditions and slowing down the pace of recruitment, capital expenditure is expected to be US$23 billion this year, which is lower than the forecast of US$27 billion.

Advertisements

You may also like

Comments are closed.

More in:News