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