Stocks Of Intel Fall After The Chipmaker Missed Its Q4 Targets And Forecasts A Loss

(CTN News) – Intel (INTC) shares fell Friday after the chipmaker missed Wall Street’s targets for the fourth quarter and guided much lower than expected.

It earned adjusted 10 cents per share on sales of $14.04 billion in the December quarter, the Santa Clara-based company said late Thursday. FactSet polled analysts who expected earnings of 21 cents a share on $14.49 billion in sales. In the past year, Intel’s earnings have fallen 92% while its sales have fallen 28%.

On sales of $11 billion, Intel expects to lose an adjusted 15 cents a share. Based on its midpoint guidance. In the first quarter, Wall Street expected earnings of 25 cents a share on sales of $13.93 billion. During the same quarter last year, Intel earned 87 cents a share on $18.35 billion in sales.

In a news release, Chief Executive Pat Gelsinger said, “Despite economic and market headwinds, we continue to make significant progress on our strategic transformation.”

As he continued, “We will continue to navigate short-term challenges while striving to deliver leadership products anchored on open and secure platforms, driven by at-scale manufacturing, in 2023.”

Stocks of Intel fall after report

Today, Intel stock dropped 7.6% to 27.82 in morning trade. On Thursday, Intel stock rose 1.3% to close at 30.09.

The chipmaker’s stock has struggled due to weak PC sales, production problems, and AMD (AMD) market share gains.

In fourth quarter, PC chip sales fell 36% to $6.6 billion. During the fourth quarter, the company’s data center chip unit posted a 33% decline in sales.

Despite a struggling (product) roadmap, sinking gross margins, and negative free cash flow, Barclays analyst Blayne Curtis wrote to clients. Intel stock remains equal weight in his rating.

Beat fourth-quarter targets for Mobileye

On Thursday, Intel spinoff Mobileye (MBLY) posted better-than-expected fourth-quarter results.

Revenue rose 59% year over year to $565 million for the maker of computer vision for advanced driver assistance systems and autonomous vehicles. In adjusted earnings, the company earned 27 cents per share, an increase of 110%. According to analysts, adjusted earnings would be 17 cents per share on $533 million in sales.

Based on Mobileye’s midpoint outlook, revenue for 2023 will be $2.24 billion, up 20%. That beat estimates of $2.2 billion. Revenue grew 35% to $1.87 billion in 2022.

On Thursday, Mobileye stock closed at 35.97, up 6%.

Stock rating for Intel is poor

According to IBD Stock Checkup, Intel ranks 21 out of 32 stocks in the semiconductor manufacturing industry group. IBD’s Composite Rating is 15 out of 99.

IBD ranks Mobileye third out of 34 stocks in its fabless semiconductor industry group. There’s a Composite Rating of 96 for Mobileye.

A composite rating is a blend of fundamental and technical metrics to help investors pick stocks. A composite score of 90 or higher is the top score.

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