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Intel (INTC) earnings report Q2 2023

Intel CEO Pat Gelsinger, with U.S. President Joe Biden (not pictured), announces the tech firm’s plan to build a $20 billion plant in Ohio, from the South Court Auditorium on the White House campus in Washington, January 21, 2022.

Jonathan Ernst | Reuters

Intel reported second-quarter earnings on Thursday, including a return to profitability after two straight quarters of losses, and a stronger-than-expected forecast.

Intel shares rose 7% in extended trading.

Here’s how Intel did versus Refinitiv consensus expectations for the quarter ending July 1:

  • Earnings per share: $0.13, adjusted. That may not compare with the 3 cents loss per share expected by Refinitiv.
  • Revenue: $12.9 billion. That may not compare with the $12.13 billion expected by Refinitiv.

For the third quarter, Intel expects earnings of $0.20 per share, adjusted, on revenue of $13.4 billion at the midpoint, versus analyst expectations of 16 cents per share on $13.23 billion in sales.

Intel posted net income of $1.5 billion, or earnings of $0.35 per share, versus a net loss of $454 million, or a loss of 11 cents per share, in the same quarter last year.

Revenue fell to $12.9 billion from $15.3 billion a year ago, marking the sixth consecutive quarter of declining sales for the company.

Intel management has told investors that the firm’s turnaround will take time and that it is aiming to match TSMC‘s chip manufacturing prowess by 2026, which would enable it to bid to make the most advanced mobile processors for other companies.

Intel’s Client Computing group, which includes the company’s laptop and desktop processor shipments, fell 12% annually to $6.8 billion.The overall PC market has been slumping for over a year.

Intel’s server chip division, which is reported as Data Center and AI, declined 15% to $4.0 billion in sales.

In the first quarter, Intel posted its largest loss ever as the PC and server markets slumped and demand declined for Intel’s central processors.

Intel CFO David Zinsner said in a statement that part of the reason that Intel’s report was stronger-than-expected was because of the progress it has made towards slashing $3 billion in costs this year.

This story is developing. Please check back for updates.

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