Intel's Shares Surge Following Positive Guidance
Intel's shares have seen a significant increase in after-hours trading, following an earnings report and guidance that were not as dire as initially feared.
Improving Business Trends Despite Restructuring Charges
Three months after a disappointing earnings report that led to a significant drop in its share price, Intel has reported nearly $19 billion in restructuring charges. Despite this, the tech company has stated that its business trends are now showing signs of improvement.
Third Quarter Earnings Report
For the third quarter, Intel reported an adjusted loss per share of 46 cents. This is in contrast to Wall Street's consensus estimate, which predicted a loss of 2 cents per share, according to FactSet. However, these results may not be directly comparable to analysts' estimates due to a negative impact of 63 cents from impairment charges.
Revenue and Guidance
Intel's revenue for the third quarter was reported at $13.3 billion, exceeding analysts' expectations of $13.02 billion. The company also increased its guidance for the fourth quarter.
Fourth Quarter Projections
Intel has projected that its fourth-quarter revenue will range from $13.3 billion to $14.3 billion. This is compared to analysts' average estimate of $13.6 billion. The company also expects to report a profit of 12 cents per share, which is double the 6 cents per share that Wall Street had projected.
Intel Shares Up But More Work Needed
Following the release of these results, Intel's shares increased by 10-12% in after-hours trading. However, there is still much work to be done to fully recover.
CEO's Statement
"This was a critical period of time for the company," said CEO Pat Gelsinger. "We got a lot done."
Cost and Capital Reduction Initiatives
In addition to these results, Intel announced that its audit and finance committee has approved a series of cost and capital reduction initiatives. These include a reduction in headcount by 16,500 employees.
Bottom Line
Intel's recent earnings report and guidance have led to a surge in the company's shares. However, with significant restructuring charges and the need for further improvements, it's clear that there are still challenges ahead. What are your thoughts on Intel's current situation? Do you think the company is on the right track? Share your thoughts and discuss with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
