The company predicted a surprise loss in the current period and a sales range that missed analysts’ estimates by billions of dollars. At the low end of Intel’s projections, revenue would be the smallest quarterly total since 2010.
Intel predicted that its gross margin — the percentage of sales remaining after deducting the cost of production — would be 39 per cent in Q1. That’s down 14.1 points from the same period a year ago and over 10 points narrower than that of its nearest rival, AMD.
First-quarter sales will be $10.5 billion to $11.5 billion, the chipmaker said. That compares with an average Wall Street estimate of $14 billion. Intel expects to lose 15 cents in the quarter, excluding some items. Analysts had projected a profit of 25 cents.
A post-pandemic downturn for Intel’s main business, PC chips, has torpedoed efforts to get the firm’s financial performance back on course. Instead, it’s only losing more ground.
Intel shares fell 9.3 per cent Friday in premarket trading following the announcement. Earlier, they closed at $30.09.
The stock had increased 14 per cent this year.
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