Intel reported second-quarter 2022 financial results that came below analysts expectations
Intel shares dipped more than 10% after the company announced second-quarter 2022 financial results and full-year guidance that was below analysts’ expectations.
▪ Second-quarter GAAP revenue of $15.3 billion, down 22% year over year (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.
“This quarter’s results were below the standards we have set for the company and our shareholders. We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues,” said Pat Gelsinger, Intel CEO.
In the second quarter, the company generated $0.8 billion in cash from operations and paid dividends of $1.5 billion.
Intel previously announced several organizational changes to accelerate its execution and innovation by allowing it to capture growth in both large traditional markets and high-growth emerging markets.
This includes the reorganization of Intel’s business units to capture this growth and provide increased transparency, focus and accountability.
As a result, the company modified its segment reporting to align to the previously announced business reorganization. All prior-period segment data has been retrospectively adjusted to reflect the way the company internally manages and monitors operating segment performance starting in fiscal year 2022.