Intel Corp.’s stock rallied to close higher in the last minutes of trading Thursday after the chip maker unexpectedly released quarterly results before the end of the trading session, but the stock retreated in extended trading as the company addressed long-range plans.
Last week, Intel announced that Pat Gelsinger was returning to the company to take over the chief executive position on Feb. 15 from Bob Swan. Back in July, Intel said it would delay the release of its next-generation 7-nanometer chips and said the company could outsource manufacturing.
Gelsinger said Thursday he would provide more detail about Intel’s long-term plans when he comes on board in mid-February.
“Based on initial reviews, I am pleased with the progress made on the health and recovery of the 7-nanometer program,” Gelsinger said on the call. “I am confident that the majority of our 2023 products will be manufactured internally.”
Gelsinger said he still needs to analyze progress made and indicated that more leadership changes at Intel were coming.
“You’ll be seeing other announcements of key leaders coming back in,” Gelsinger said.
shares rallied to close up 6.5% at $62.46 after releasing holiday sales and an outlook that beat expectations, but slipped nearly 4% in after-hours activity. The chip maker reported fourth-quarter net income of $5.86 billion, or $1.42 a share, compared with $6.91 billion, or $1.58 a share, in the year-ago period. After adjusting for restructuring and acquisition-related costs, Intel reported earnings of $1.52 a share, flat from a year ago.
Revenue fell to $19.98 billion from $20.21 billion in the year-ago quarter. Analysts surveyed by FactSet had estimated adjusted earnings of $1.11 a share on revenue of $17.53 billion, while Intel had forecast adjusted earnings of $1.10 a share on revenue of approximately $17.4 billion.
Intel’s data-center group saw revenue decline 16% to $6.1 billion, while analysts expected $5.48 billion. Intel’s largest segment — client-computing, the traditional PC group — rose 9% to $10.9 billion with analysts expecting $9.57 billion.
Intel reported that nonvolatile memory solutions revenue declined 1% to $1.2 billion, while Wall Street expected $1.08 billion. “Internet of Things,” or IoT, revenue declined 16% to $777 million, compared with an expected $764.2 million. Mobileye revenue rose 39% to $333 million, while the Street had expected $234.2 million.
For the first quarter, Intel forecast adjusted revenue of $17.5 billion and adjusted earnings of $1.10 a share. Analysts on average expect first-quarter adjusted earnings of 93 cents a share on revenue of $16.08 billion. The company said it would provide a full-year outlook at a later date.
Over the past 12 months, Intel shares have gained 3%, while the Dow Jones Industrial Average
— which counts Intel as a component — is up 7%, the S&P 500 index
is up 16%, the tech-heavy Nasdaq Composite Index
is up 44%, and the PHLX Semiconductor Index
is up 64%.