Intel (NASDAQ: INTC) has now announced its earnings for the fourth quarter of 2022, broadly missing consensus expectations regarding its top-line and bottom-line metrics.
Intel (NASDAQ: INTC) Earnings Release for the Fourth Quarter of 2022
For the three months that ended on the 31st of December 2022, Intel reported $14 billion in non-GAAP revenue. The number missed consensus expectations.
(All figures are in billions of dollars)
Here is the performance of Intel's business segments in Q4 2022:
During Q4 2022, Mobileye recorded the highest growth, while Client Computing Group remained the laggard with a growth of -36 percent.
The chart below illustrates consensus expectations for Intel's business segments:
Consensus Segmental Revenue
(All figures are in billions of dollars)
The following excerpt from the company's earnings release provides supplemental platform revenue information:
Finally, the company earned $0.10 in EPS (non-GAAP), missing consensus expectations.
EPS Comparison
(All figures are in dollars)
Bear in mind that, against expectations of a negative GAAP EPS print of -$0.09, Intel has reported -$0.16 in GAAP earnings per share.
Intel has declared a quarterly dividend of $0.365 per share.
Here is Intel's guidance for the first quarter of 2023:
Investors have reacted negatively to Intel's latest earnings release, with the stock currently down over 7 percent in after-hours trading.
This is because the company missed the mark on Q4 2022 results and has provided a very soft guidance for Q1 2023.
Intel CEO: Seeing The Largest Ever Inventory Correction By Customers In Q1
Then maybe slash prices and clear out inventories instead of constantly guiding to misses
— zerohedge (@zerohedge) January 26, 2023
Earnings Context
This time around, Intel will serve as a bellwether for the broader semiconductor sector as it is the first company in this grouping to report its earnings for the final quarter of 2022.
According to the research firm Gartner, global PC shipments declined a whopping 28.5 percent in the fourth quarter of 2022, constituting the largest decline since the research house began tracking shipments in the mid-1990s.
As such, analysts expect this weakness to persist through H1 2023. A fresh investment note from Citi – published this Tuesday – contained the following observation:
"There [is] more downside to consensus estimates given the PC and data center correction, in addition to market share loss."
The bank went on to state that while Intel may forecast a recovery in the second half of 2023, "we do not believe it will happen until 2024."
Meanwhile, Intel is in the process of closing its $5.4 billion acquisition of Tower Semiconductor, a move intended to expedite the company's foundry expansion.
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