Intel Shares Drop 6% on Disappointing Guidance

Intel Corporation (NASDAQ:INTC) shares plunged more than 6% on Friday after the company provided disappointing quarterly results and guidance. Q4 EPS came in at $0.10, worse than the Street estimate of $0.22. Revenue was $14 billion, missing the Street estimate of $14.57 billion.

The company delivered a remarkably poor Q1 guidance and halted its traditional practice of guiding for the full calendar year, reflecting significant inventory digestion at customers as well as quickly deteriorating macro demand across all of its segments.

The company expects Q1/23 EPS of ($0.15), compared to the Street estimate of $0.24, and revenue in the range of $10.5-11.5 billion, compared to the Street estimate of $13.93 billion.

Analysts at Deutsche Bank agree that macro is the primary driver of this shortfall (with the company noting weakness spreading into the Cloud market), but they cannot ignore the Intel-specific dynamics exacerbating this pain (overly confident revenue outlook and hiring in 2022, Data Center roadmap issues, etc.).