Intel released the financial report for the first quarter of 2023 and announced that its profit per share has decreased by 133% compared to the same period of 2022. Intel’s revenue fell by almost 36% compared to the first quarter of 2022, from $18.4 billion to $11.7 billion.
Despite Intel’s poor performance, the company’s loss per share and revenue were slightly better than Wall Street analysts had predicted.
Intel shares rose initially in response to the company’s new financial report, but then fluctuated.
as CNBC He writes, Intel’s loss per share reached 4 cents in the first quarter of 2023, while analysts had predicted a loss of 15 cents. Intel’s revenue of $11.7 billion was higher than the forecasted revenue of $11.04 billion.
Intel expects total revenue of $12 billion in the second quarter of 2023 and a loss of four cents per share. Analysts had forecast a loss of 1 cent per share and revenue of $11.75 billion.
Intel posted a net loss of $2.8 billion (66 cents per share) in the first quarter of 2023. In the first quarter of 2022, the blue team managed to earn a net profit of $8.1 billion ($1.98 per share).
This is the fifth consecutive quarter that Intel’s product sales have declined, and the second consecutive quarter that the company has posted a financial loss. According to statistics, Intel’s loss in the first quarter of 2023 is higher than the fourth quarter of 2017, the largest quarterly loss in the company’s history. Intel reported a loss of $687 million in the fourth quarter of 2017.
The revenue of Intel’s Client Computing business, which includes desktop and laptop processors, reached $5.8 billion in the first quarter of 2023 with an annual decline of 38%. According to research institutes, computer sales have dropped significantly in the last year. Pat GelsingerCEO of Intel, says that the PC market is returning to stable conditions.
Intel’s server business revenue fell 39 percent to $3.7 billion. The Network and Edge unit’s revenue fell by 30% and reached $1.5 billion. On the other hand, the revenue of Mobileye, which makes software and systems for self-driving cars, increased by 16% and reached 458 million dollars.
Intel says recent cost-cutting measures such as layoffs have paid off. The company expects to reduce its costs by three billion dollars this year, and this amount will reach $10 billion per year by 2025.
The value of Intel shares has grown by more than 9% since the beginning of 2023, but compared to the same time in 2022, it is 35% lower.
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