Intel CEO Pat Gelsinger stands in front of the cathedral in the German city of Magdeburg on November 12, 2022. During his visit, Gelsinger also visited the planned Intel Gigafactory site in the Eulenberg industrial park. /dpa-Zentralbild/dpa (Photo by Peter Gercke/picture alliance via Getty Images)

Peter Gerke | Picture Alliance | Getty Images

Intel shares fell as much as 7% in extended trading Thursday after the chipmaker posted fourth-quarter results that missed analysts’ estimates and gave a weaker-than-expected forecast.

Here’s how the company did it:

  • income: 10 cents per share, adjusted, versus the 20 cents per share analysts expected, according to Refinitiv.
  • income: $14.04 billion versus the $14.45 billion analysts were expecting, according to Refinitiv.

Intel’s revenue fell 32% year over year in the quarter ended Dec. 31, according to the statement. This is the fourth straight quarter of sales declines as the PC market retreats from the Covid boom.

The company’s net loss was $664, compared with a profit of $4.62 billion in the year-ago quarter.

Investors can expect more pain in the first quarter. Intel called for an adjusted net loss of 15 cents per share on revenue of $10.5 billion to $11.5 billion. Analysts polled by Refinitiv had expected earnings of 24 cents a share on revenue of $13.93 billion.

“In 2023, we will continue to address short-term challenges while striving to deliver on our long-term commitments, including delivering industry-leading products based on open and secure platforms powered by scale and powered by our incredible team,” Intel. This was announced by CEO Pat Gelsinger. At least in the first half of the year, Intel will struggle with “persistent economic difficulties,” the company said in a presentation of its results.

Intel’s Client Computing Group, which includes PC chips, reported $6.63 billion in fourth-quarter revenue, 36% below the $7.68 billion consensus of analysts polled by StreetAccount. Gartner said the PC market shrank more sharply than in any quarter since it began tracking the industry in the 1990s.

The data center and AI segment, which consists of server chips, memory and programmable gateway arrays, posted revenue of $4.30 billion, down 33% but still beating the StreetAccount consensus of $4.17 billion .

The Intel Network and Edge segment, which contains networking products, had $2.06 billion in revenue. That’s down 1% from the year-ago quarter and below the StreetAccount consensus of $2.26 billion.

During the quarter, Mobileye, the autonomous driving hardware and software provider that Intel acquired for $15.3 billion in 2017, has made its Nasdaq debut. Intel still controls a majority of the votes in Mobileye’s common stock.

Intel said in January that it extended the useful life of some hardware from five to eight years, which would add $2.6 billion to gross profit in 2023. The move is separate from a $3 billion cost-savings plan for 2023 that Intel announced in its October earnings report. Amazon and Microsoft have made similar accounting adjustments for their server and network equipment in recent years, and IBM followed suit on Wednesday.

Shares of Intel are down about 42% over the past year, while the S&P 500 is down 7% over the same period.

Executives will discuss the results with analysts during a conference call beginning at 5:00 p.m. ET.

This is hot news. Check for updates.

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