Intel Corporation headquarters in Santa Clara, California, April 23, 2025.
David Paul Morris Bloomberg Getty images
Intel Reported The results of the first quarter On Thursday, which defeated the estimates of analysts, while issuing disappointing guidelines and announcing plans to reduce expenditure in the coming year, the first under the General Director of Lip-Bu Tan. Actions fell in prolonged trade.
Here's how the company, compared to the estimates of the LSEG consensus:
- Profit per share: 13 cents, corrected vs. 1 Cent
- Income: Estimated $ 12.67 billion vs. $ 12.3 billion
Intel said that he was expecting revenues in the current quarter of USD 11.8 billion at the central point of the range, lower than the average respect of an analyst of USD 12.82 billion. The company said that earnings would be an electricity while analysts were looking for a profit of 6 cents per share.
Intel said his guidelines in the second quarter reflected an increased uncertainty driven by the macro environment.
“Very liquid commercial policies in the US and outside, as well as regulatory risk, increased the chance of economic slowdown, with the probability of recession growth,” said Intel Financial Director David Zinsner about calling for earnings with analysts.
In the first quarter, Intel recorded a net loss of USD 800 million, i.e. 19 cents per share, due to higher sales costs and some letters. Compared to a net loss of USD 400 million, i.e. 9 cents per share, in 2024.
This is the first report on Chipmaker's earnings, since Tan took over the position of general director in March, after Pat Gelsinger gave way under the pressure of board members and investors. Gelsinger's term was emphasized by the company's inability to effectively compete in artificial intelligence and its efforts to move to the production of semiconductors for other companies, including competitors.
“The first quarter was a step in the right direction, but there are no quick corrections, because we are working on a return to gaining participation in the market and increasing sustainable growth,” Tan said in a statement.
Intel said he plans to reduce operating and investment costs by removing management layers to become more efficient. The company stated that it expected that in 2025 it expected $ 17 billion, compared to the previous target $ 17.5 billion, and that it will be focused on $ 18 billion of investment expenditure in 2025, compared to the previous goal of $ 20 billion.
Intel said he did not contain restructuring fees in his guidelines. Zinsner Kristina Partsinevelos from CNBC said that the reduction of operating expenses includes reduced jobs, especially for managers, but that Intel has not yet finalized the number of cuts.
“It is not possible for these critical changes to reduce the size of our workforce,” said Tan in a note for employees published on the Intel website. He said the cuts would start in this quarter.
Intel investors hope that TAN can reverse a company that loses market share in its basic processor industry and is not competitive for AI systems with Nvidiawhich dominates in a rapidly developing sector.
Tan has already begun to shape his team last week, calling the head of the Sachin Katti network to become a technology director and the head of artificial intelligence, conducting the general strategy of AI Intel and plans to release the product. Tan said on Thursday in the note that Intel employees would have to work four days a week in the office until September.
The Intel Center Center group has reported $ 4.1 billion, which is an increase in 8% compared to the previous year. Intel said that he had connected his computer and edge group, previously managed by Katti, in the organization of the data center.
Another great company, chips for computers, is reported in the client's computing group. Revenues dropped by 8% every year to USD 7.6 billion.
The developing Intela company recorded $ 4.7 billion, although most of these sales come from other Intel departments to the production of its tokens.
