Pat Gelsinger, Intel's CEO, attributed the most recent decline in the company's financial outlook to "continuedmacroheadwinds" and a considerably steeper chip inventory correction than anticipated.
Although $INTC did not provide financial guidance for the remainder of the year, Gelsinger expressed optimism for a comeback in the second half of 2023 due to a resurgence in China's economy and rising demand from major corporations the government.
Intel anticipates a Q1 loss of 15 cents per share, excluding one-time items, with revenue expected to range between $10.5 billion and $11.5 billion. Additionally, the company anticipates gross margins to be lower than 40%, at 39%.
The extent of the decline in the financial results was described as "shocking" by Bernsteinanalyst Stacy Rasgon, who has assigned Intel an underperformingrating. She also expressed concern for the company's cash position.
$INTC is in red with -9.4% in pre-market trading sessions.
Source: Yahoo Finance
More On Earnings & Economy
$INTC$V and $HAS all made after-hours moves due to Intel's earnings exceeding expectations and Visa's 15% job cut, respectively.
After a good US GDP and yet another solid batch of corporate earnings, US stocks rose. Initial jobless claims dropped to 187,000, the lowest level since April 2022, while new home sales were up 2.3% in Q4. In addition, the US GDP increased by 2.9% YoY. The data indicate that the US economy is strong.
The high pace of inflation justifies the Federal Reserve's decision to keep raising interest rates.
The indexes gave up gains made earlier in the week at the start of trading on Wednesday due to disappointing quarterly earnings reports from software maker $MSFT, defense contractor $BA, and medical products supplier Abbott Laboratories $ABT, as well as a cautious business outlook provided by diversified company $MMM.
Adani sell-off $50b
The flagship company of the Adani Group had a 17% decline in shares on Friday due to short seller claims of fraud involving one of the wealthiest men in the world's business empire.
As the Indian tycoon moves forward with an Rs200 billion ($2.4 billion) share sale meant to draw foreign investors, other companies connected to Gautam Adani's conglomerate also experienced a steep decline.
The billionaire hedge fund manager Bill Ackman praised Hindenburg's analysis on Thursday, calling it "very credible" and "really well researched."
$V shares increased 1.5% after the company posted earnings that exceeded expectations. $2.18 adjusted EPS and $7.94 billion in revenue exceeded expectations of $2.01 and $7.70 billion, respectively.
Shares fell sharply when toymaker Hasbro announced it was laying off 1,000 employees, or 15% of its workforce. Furthermore, a poor fourth-quarter performance was forecast.
The cost of Brent and Crude oil is unchanged. The main discussion topics are the OPEC conference and potential supply changes. There are already conflicting rumors in circulation. Although OPEC is unlikely to alter its supply, uncertainty still exists.