Intel issues weak forecast, citing seasonality and an uncertain economy

Core Insights - Intel reported earnings and revenue that exceeded estimates, despite issuing disappointing quarterly guidance [1][7] - The company experienced a 7% decline in revenue year-over-year for the third consecutive quarter, with a net loss of $126 million compared to a net income of $2.67 billion in the same quarter last year [1][2] Financial Performance - In the fourth quarter, Intel's revenue was $14.26 billion, surpassing the expected $13.81 billion [7] - The Client Computing Group generated $8.02 billion in revenue, down 9% year-over-year but above the $7.84 billion consensus [5] - The Data Center and Artificial Intelligence segment reported $3.39 billion in revenue, down 3% and in line with the $3.38 billion consensus [5] - The Network and Edge unit contributed $1.62 billion in revenue, up 10% and exceeding the $1.5 billion consensus [6] Management Changes - This earnings report is the first since the departure of former CEO Pat Gelsinger, who faced challenges in maintaining market share and competing in the AI sector [2] - Intel appointed two interim co-CEOs, David Zinsner and Michelle Johnston Holthaus, to lead the company moving forward [2] Future Outlook - Intel anticipates breakeven profit for the first quarter, with projected revenue between $11.7 billion and $12.7 billion, below the LSEG consensus of $12.87 billion [4] - Management cited seasonality, economic conditions, and competition as factors affecting performance, noting that clients are currently digesting inventory [4] Government Support - Intel finalized a $7.86 billion U.S. government grant aimed at supporting manufacturing in four states [6]