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According to the report, the company experienced a 133% annual reduction in its earnings per share for the quarter.
Intel Corporation (NASDAQ: INTC) reported its largest quarterly loss in its Q1 2023 financial results. The company’s shares initially rose on the report, after which it fluctuated in extended trading sessions. At premarket trading, Intel is up 3.95% to $31.04 after closing up 2.79%. The semiconductor chip maker has recorded both gains and declines over the past year. It has shed more than 31% in the last twelve months and plunged 8.60% over the past month. The company’s stock is also down 1.45% in the last five days.
On the other hand, Intel has been increasing since the beginning of the year, advancing almost 13%. It also popped 6.04% in the last three months.
Intel Releases Q1 2023 Results
According to the report, the company experienced a 133% annual reduction in its earnings per share for the quarter. Intel noted that Q1 GAAP loss per share was $0.66, and the non-GAAP per share loss was $0.04. Meanwhile, analysts had predicted a 15 cents loss per share. In Q1, Intel plunged to a net loss of $2.8 billion or 66 cents from a net profit of $8.1 billion or $1.98 per share recorded in the previous year.
Following Q1, Intel has seen its second consecutive quarter of losses and the largest loss in its history. Also, it is the fifth straight quarter of lower sales for the company.
The company’s quarterly revenue also dropped 36% YoY to $11.7 billion. Notably, revenue in the first quarter of 2022 was $18.4 billion. Despite the declines, the loss per share was a little better than Wall Street predictions.
As for CEO Pat Gelsinger, Intel had a solid financial performance in Q1. He said the quarterly results show the company’s steady progress with its transformation. Gelsinger continued:
“We hit key execution milestones in our data center roadmap and demonstrated the health of the process technology underpinning it. While we remain cautious on the macroeconomic outlook, we are focused on what we can control as we deliver on IDM 2.0: driving consistent execution across process and product roadmaps and advancing our foundry business to best position us to capitalize on the $1 trillion market opportunity ahead.”
The chief financial officer David Zinsner stated that Intel exceeded Q1 expectations on the top and bottom lines. He mentioned that the semiconductor chip manufacturer is committed to remaining disciplined on expense management. It plans to continue to drive efficiencies and cost savings. He added that Intel is “prioritizing the investments needed to advance our strategy and establish an internal foundry model, one of the most consequential steps we are taking to deliver on IDM 2.0”.
In forecasting the current quarter, Intel expects revenue to fall between $11.5 billion and $12.5 billion.