Intel Announces Third Quarter 2022 Earnings
Intel today announced its third-quarter 2022 financial results, with revenue and earnings per share beating previous analysts’ expectations, but both the fourth-quarter and full-year outlooks missed expectations. Intel also announced a cost-cutting and efficiency-improvement plan that could cut costs by up to $10 billion between now and 2025. Intel CEO Pat Gelsinger previously announced its layoff plan in a video conference with employees as part of Intel’s cost-cutting plan.
Image: Intel
Intel’s total revenue in the third quarter of 2022 was $15.338 billion, down 20% from $19.192 billion in the same period last year; net profit was US$1.019 billion, down 85% from US$6.823 billion in the same period last year; gross profit margin was 42.6%, down from 56% in the same period last year; diluted earnings per share came in at $0.59, beating consensus estimates of $0.33, but down from $1.45 a year earlier.
If broken down by sector, in the third quarter of 2022, client computing group revenue was $8.124 billion, down 17% year-on-year; data center and artificial intelligence (DCAI) revenue was $4.209 billion, down 27% year-on-year; network and edge business (NEX) revenue was $2.266 billion, an increase of 14% year-on-year; accelerated Computing and Graphics (AXG) revenue was $185 million, up 8% year over year; mobileye’s revenue was $450 million, up 38% year over year; Intel’s foundry services (IFS) revenue was $171 million, down 2% year over year.
Intel expects revenue in the fourth quarter of 2022 to be between $14 billion and $15 billion, with a gross margin of about 41.4% and a diluted loss of about $0.1 per share. Full-year 2022 revenue is expected to be between $63 billion and $64 billion, with gross margins of about 47.5% and earnings per diluted share of about $2.
