Intel beats by $0.01, beats on revs, DCAI segment revenue down 9%; guides Q1 EPS below consensus, revs below consensus (20.01 +0.30)
- Reports Q4 (Dec) earnings of $0.13 per share, excluding non-recurring items, $0.01 better than the FactSet Consensus of $0.12; revenues fell 7.1% year/year to $14.3 bln vs the $13.83 bln FactSet Consensus.
- Non-GAAP Gross margin down 6.7 ppts to 42.1%.
- Client Computing Group (CCG) revenue down 9% to $8.0 bln.
- Data Center and AI (DCAI) revenue down 3% to $3.4 bln.
- Intel Foundry revenue down 13% to $4.5 bln.
- Co issues downside guidance for Q1, sees loss of $0.00, excluding non-recurring items, vs. $0.09 FactSet Consensus; sees Q1 revs of $11.7-$12.7 bln vs. $12.88 bln FactSet Consensus. Sees non-GAAP gross margin of 36.0%.
- "The cost reduction plan we announced last year to improve the trajectory of the company is having an impact," said David Zinsner, interim co-CEO and chief financial officer of Intel. "We are fostering a culture of efficiency across the business while driving toward greater returns on our invested capital and improved profitability. Our Q1 outlook reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics. We will remain highly focused on execution to build on our progress and unlock value."