Intel (INTC) stock dropped 11 percent following the company’s Q2 2022 results. Among the reasons for this include Intel lowering its full-year expectations, and revenue declining 22 percent year-over-year according to the official press release from Intel.
Intel ended the quarter with a $454 million net loss and gross margin narrowing to 36.5 percent from the previous quarter’s 50.4 percent. In regards to guidance, Intel called for 35 cents in adjusted earnings per share on $15 to $16 billion in revenue.
The statement from Intel also included a summary which notes the aforementioned GAAP revenue of $15.3 billion which is down 22 percent year-over-year, and non-GAAP revenue of $15.3 billion which is down 17 percent year-over-year.
- Second-quarter GAAP revenue of $15.3 billion, down 22% year over year (YoY), and non-GAAP revenue of $15.3 billion, down 17% YoY.
- Intel’s Client Computing and Datacenter and AI Groups largely impacted by continued adverse market conditions; Network and Edge Group and Mobileye achieved record quarterly revenue.
- Second-quarter GAAP earnings per share (EPS) was $(0.11); non-GAAP EPS was $0.29.
- Revising full-year revenue guidance to $65 billion to $68 billion; reiterating full-year adjusted free cash flow guidance.
In an interview with CNBC, Intel’s finance chief stated that “we do think we’re on the bottom,” and that things such as price increases and a “seasonal improvement in the fourth quarter” should help the company bring its gross margin back up to 51 to 53 percent.
It’ll certainly be interesting to see if this is the case. For more on the matter, be sure to read through the earnings report statement from Intel. Also check out some of our previous Intel coverage including how Intel blamed Congress for its potential Ohio chip factory delay.