Intel CEO Pat Gelsinger holds a wafer sample during his keynote speech on the Computex conference in Taipei on June 4, 2024.
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Intel Shares fell as much as 12% in prolonged trading on Thursday after the chipmaker said on Thursday it will lay off greater than 15% of its workforce as a part of a $10 billion cost-cutting plan and reported lower results than analysts expected. Intel also said it will not pay a dividend within the fourth quarter of fiscal 2024.
Here’s how the corporate performed in comparison with LSEG analysts’ expectations:
- Earnings per share: 2 cents adjusted in comparison with 10 cents expected
- Revenue: $12.83 billion in comparison with expected $12.94 billion
Intel’s revenue fell 1% year-on-year within the second quarter of its fiscal 12 months ended June 29, in response to a study. opinionThe company reported a net lack of $1.61 billion, or 38 cents per share, compared with net income of $1.47 billion, or 35 cents per share, within the year-ago quarter.
The company’s Client Computing Group, which makes PC chips, contributed $7.41 billion to revenue, up 9 percent and right near the $7.42 billion consensus of analysts surveyed by StreetAccount.
Intel’s data center and artificial intelligence division reported revenue of $3.05 billion, down 3% and below the Street Account consensus of $3.14 billion.
For the fiscal third quarter, Intel forecast an adjusted net lack of 3 cents per share on revenue of $12.5 billion to $13.5 billion. The LSEG consensus was for adjusted net income of 31 cents per share and revenue of $14.35 billion.
In the second quarter of the fiscal 12 months, Intel announced that Apollo invest 11 billion dollars in a three way partnership around a chip manufacturing plant in Ireland. The company introduced Xeon 6 server processors and a Gaudi 3 Accelerator for artificial intelligence workloads.
Over and beyond disclosed in May that the U.S. Department of Commerce was revoking consumer goods export licenses for a customer in China, believed to be Huawei. Intel said second-quarter revenue would still be within the previously announced range of $12.5 billion to $13.5 billion, but below the midpoint.
As of June 29, Intel employed 125,300 people, so the layoffs could affect greater than 18,700 people.
On an adjusted basis, Intel expects cuts of about $20 billion this 12 months, $17.5 billion in 2025 and much more in 2026.
Excluding after-hours trading, Intel shares have lost 42 percent of their value to date this 12 months, while the S&P 500 index has risen nearly 14 percent over the identical period.
Executives will discuss the leads to a conference call with analysts starting at 5:00 p.m. ET.
This is breaking news, please check back later for updates.
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