Intel CEO Pat Gelsinger holds a pattern of a wafer throughout his keynote speech on the Computex convention in Taipei on June 4, 2024.
I-hwa Cheng | AFP | Getty Pictures
Intel shares slid 12% in prolonged buying and selling on Thursday after the chipmaker mentioned Thursday it might lay off over 15% of its workers as a part of a $10 billion value discount plan and reported lighter outcomes than analysts had envisioned. Intel additionally mentioned it might not pay its dividend within the fiscal fourth quarter of 2024.
Here is how the corporate did, in comparison with LSEG analyst expectations:
- Earnings per share: 2 cents adjusted vs. 10 cents anticipated
- Income: $12.83 billion vs. $12.94 billion anticipated
Intel’s income declined 1% yr over yr within the fiscal second quarter, which ended on June 29, based on a press release. The corporate had a $1.61 billion internet loss, or 38 cents per share, in contrast with internet revenue of $1.47 billion, or 35 cents per share, within the year-ago quarter.
The corporate’s Shopper Computing Group that makes PC chips contributed $7.41 billion in income, up 9% and proper across the $7.42 billion consensus amongst analysts surveyed by StreetAccount.
Intel’s Knowledge Heart and Synthetic Intelligence unit posted $3.05 billion in income. The outcome was down 3% and decrease than the $3.14 billion StreetAccount consensus.
For the fiscal third quarter, Intel known as for an adjusted internet lack of 3 cents per share on $12.5 billion to $13.5 billion in income. The LSEG consensus was adjusted internet earnings of 31 cents per share and $14.35 billion in income.
Throughout the fiscal second quarter, Intel introduced that Apollo would make investments $11 billion in a three way partnership round a chip manufacturing plant in Eire. The corporate additionally launched Xeon 6 server processors, together with a Gaudi 3 accelerator for synthetic intelligence workloads.
As well as, Intel disclosed in Could that the U.S. Commerce Division was revoking export licenses for client gadgets to a buyer in China, broadly believed to be Huawei. Intel mentioned fiscal second-quarter income would nonetheless be in its beforehand introduced vary of $12.5 billion to $13.5 billion, however beneath the center of the vary.
As of June 29, Intel had 125,300 workers, which means the cuts may have an effect on over 18,700 of them.
On an adjusted foundation, Intel mentioned it expects round $20 billion in cuts this yr, $17.5 billion in 2025 and extra in 2026.
Excluding the after-hours transfer, Intel inventory has misplaced 42% of its worth up to now this yr, whereas the S&P 500 index is up virtually 14% in the identical interval.
Executives will talk about the outcomes with analysts on a convention name beginning at 5 p.m. ET.
That is breaking information. Please examine again for updates.
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