Intel headquarters in Santa Clara, California, USA, on Wednesday, April 23, 2025. Intel Corp. is scheduled to publish profit figures on April 24.
David Paul Morris | Bloomberg | Getty images
Intel I reported results of the first quarter on Thursday that exceeded the estimates of the analysts, while issuing a disappointing orientation and announced plans to reduce operating and capital expenses in next year, the first one under the Lip-Bu CEO Tan. The action fell around 5% in the extended trade.
This is how the company did, versus esteem of consensus of LSE:
- EPS: 13 cents, adjusted compared to 1 estimated penny
- Revenue: $ 12.67 billion compared to $ 12.3 billion estimated
Intel said he expects income for the current quarter of $ 11.8 billion at the midpoint of the range, lower than the average estimate of analysts of $ 12.82 billion. The company said the profits will be equilibrium, while analysts were looking for profits or 6 cents per share.
Intel said his second quarter guide reflected a high uncertainty promoted by the macro environment.
For the first quarter, Intel reported a loss or $ 800 million, or 19 cents per share, due to higher sales costs and some of the writings. That is compared to the revenues of the network of $ 2.7 billion, or 63 cents per share, last year.
It is the first gain report of the chips manufacturer from so on CEO in March, after Pat Gelsinger resigned in December under the pressure of the Members of the Board and investors. Gelsinger’s possession was highlighted by the company’s inability to compete in cash in artificial intelligence and their efforts to move on to the manufacture of semiconductors for other companies, including competitors.
“The first quarter was a step in the right direction, but there are no quick solutions while we work to return to a market share and boost sustainable growth,” he said so in a statement.
Intel said Thursday that he was planning to reduce operating and capital expenses, eliminating the management layers, to be more efficient. The company said it expected $ 17 billion in operational expenses this year, below an earlier objective of $ 17.5 billion, and that would point to $ 18 billion in capital expenses in 2025, below an earlier objective of $ 20 billion.
Intel said he has not included restructuring positions in his guide. Finance Head David Zincer He told Kristina Partsinevelos de CNBC that the reduction in operating expenses would include employment cuts, especially for managers, but that Intel has not yet finished a series of cuts.
“There is no way to avoid the fact that critical thesis changes will reduce the size of our workforce,” he said so in a memorandum to employees that was published by Intel on his website. He said the cuts would begin this quarter.
Intel investors expect a company to change that is losing market share in their central processing business, and does not have a competitive AI chip for Nvidiathat dominates the rapid growth sector.
He has already begun to shape his team, last week he appointed the head of Networks Sachin Katti to be the company’s technology director and the Chief of AI, leading the general strategy of Intel and the product release plans. He said Thursday in a memorandum that Intel employees would have to work four days a week in the office in September.
Intel’s Data Center Group reported $ 4.1 billion in sales, which increased 8% year after year. Intel said he had his group of networks and edge computer science, previously directed by Katti, in his organization of data centers.
The other big business of the company, chips for PCs, is reported under the customer’s computing group, and fell 8% in an annual basic of $ 7.6 billion in sales.
Intel’s flourishing Foundry business reported $ 4.7 billion in revenues, although most of those sales come from the other Intel divisions to manufacture their chips.
