Intel earnings were only half what analysts had expected for the three months ended Dec. 31 as its personal computer (PC) chip sales fell off a cliff. The chipmaker warned investors the current quarter will be even tougher as PC market retreats from the pandemic boom.
The chipmaker reported Jan. 26 a net loss of $664 million, or an adjusted earnings per share of $0.10, on $14 billion in revenue in the last three three months of 2022. Both numbers fell short of expectations. Shares fell more than 8 percent in the morning trading today (Jan. 27).
Intel makes computer processors, server chips and networking products. In the most recent quarter, its PC chip sales fell 36 percent from a year ago, contributing to a 32 percent decline of total revenue. Demand for PCs fell mainly in consumer and education markets, the company said. Earlier this week, Microsoft also reported a sharp quarterly decline in its PC business.
For the current quarter ending March 31, Intel projects a net loss of $0.15 per share on only $10 billion to $11.5 billion in revenue. The company didn’t provide a full-year forecast because of “the uncertainty in the current environment,” CEO Pat Gelsinger said on a call with analysts.