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Intel (INTC) reported a fourth-quarter loss that came in narrower than analysts expected.
The chipmaker saw revenue fall 7% year-over-year to $14.3 billion, topping the analyst consensus from Visible Alpha. Intel posted a loss of $100 million, or 3 cents per share, compared to a profit of $2.7 billion, or 63 cents per share, a year earlier. Analysts had expected a loss of $728 million, or 14 cents per share. Intel's foundry division, which makes chips for other companies, delivered revenue of $4.5 billion, beating estimates.
Interim co-CEOs Michelle Johnston Holthaus and David Zinsner said the fourth quarter showed progress in Intel’s turnaround, thanks in part to efforts to cut costs.
Zinsner also said on the company's earnings call that "while difficult to quantify, we suspect a portion of Q4 revenue upside was due to customers hedging against potential tariffs."
The results represent Intel’s first since former CEO Pat Gelsinger stepped down last month. The company has not yet named a permanent successor, raising speculation over who could take the role.
The chipmaker has also been the subject of takeover rumors recently, with Citi analysts identifying Broadcom (AVGO) as “the most likely” potential buyer, adding that the rival chipmaker might sell Intel's foundry business.
Looking ahead, Intel projected first-quarter revenue of $11.7 billion to $12.7 billion, below the analyst consensus of $12.9 billion. Its expected loss of 27 cents per share is also wider than the 13 cents analysts were looking for.
Zinsner pointed to seasonal weakness for the soft outlook, along with "macro uncertainties, further inventory digestion and competitive dynamics."
Shares of Intel rose close to 4% in extended trading Thursday following the company's earnings call. The stock had lost more than half its value over the past 12 months through Thursday’s close.
UPDATE—Jan. 30, 2025: This article has been updated since it was first published to include additional information and reflect more recent share prices.
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