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The chip maker reported fourth quarter adjusted earnings per share of 10 cents on revenue of $14 billion. Both fell short of expectations, which were for EPS of 21 cents on revenue of $14.5 billion.
Intel said it expects first quarter revenue of $10.5 billion to $11.5 billion, which is far below the $13.9 billion forecast by Wall Street. It also said it could record an adjusted loss of 15 cents a share to zero for the quarter, compared with expectations for earnings per share of 24 cents.
Intel stock fell more than 7% in after-hours trading.
CEO Pat Gelsinger said: “In 2023, we will continue to navigate the short-term challenges while striving to meet our long-term commitments, including delivering leadership products anchored on open and secure platforms, powered by at-scale manufacturing and supercharged by our incredible team.”
The company said fourth quarter revenue was down 32% from the prior year. Full-year revenue was $63.1 billion, which was down 20% from the prior year.
Intel cut jobs and took steps to cut costs in the fourth quarter. It said it set cost-reduction targets of $3 billion in 2023, and is looking to reach $8 billion to $10 billion by the end of 2025.