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Intel stock falls amid Q4 earnings miss

Yahoo Finance’s Jared Blikre joins the Live show to break down Intel’s latest earnings report.

Video transcript

- From Intel. And you can see probably not a good report. Down 5 and 1/2% after hours on their latest earnings. Let's bring in Jared Blikre, who has the earnings numbers for us, presumably not good ones.

JARED BLIKRE: No. It was a miss on both the top and bottom lines. And the guidance even worse. Let's talk about the fourth quarter right now. That's a $14.4 billion for adjusted revenue when the estimate was for higher at $14 and 1/2 billion. Now, that breaks down into client computing, network, and Mobileye revenue, also Intel Foundry Services, but mainly client computing revenue. That was a big miss. $6.63 billion. Estimate was for $7.42 billion. Network and edge revenue, $2.6 billion. The estimate was for $2.21 billion. And then Mobileye. That's spinning off. But that came in at 565, besting the Street's estimate of $435 million.


Now, adjusted EPS I said was also a miss. That was $0.10 versus the estimate of $0.19. Operating margin disappointing. 4.3% versus the estimate at 7.22%. And then finally for the fourth quarter numbers I'm going to round this out with adjusted gross margin. 43.8%, a miss, below the estimate of 45%. Now here's where we get into that forecast.

They're seeing first quarter adjusted gross margin, 39%. The estimate was 45 and 1/2%. Intel sees first quarter adjusted loss per share of $0.15. Guess what. The estimate was for a profit of $0.25. So that going in the wrong direction. Is also seeing adjusted revenue $10 and 1/2 billion to $11 and 1/2 billion when the estimate was for $13, almost $14 billion. So they're looking to make $8 to $10 billion in cost reductions by the end of 2025.

And Pat Gelsinger's turnaround strategy probably under a bit of scrutiny here. Going to be some tough answers for him to field on the call should he be there, which I would expect him to. As you can see, some of the other chipmakers down in sympathy. Nvidia down 1%. AMD down 2%. And let me just get to a quick chart of Intel here over the last few years so we can see what's happened over the pandemic. Basically, from the upper left to the lower right here. And that is not the best way for a chart to be situated. Down 56% over that time period, guys.