Intel Resurgence : Intel outperformed in Q2 Intel had a great quarter ending July 1. It outperformed Refinitiv consensus. Refinitiv expected a 3 cent loss per share, while the company earned 13 cents per share. Intel’s $12.9 billion sales exceeded the projected $12.13 billion.
Intel expects 20 cents per share adjusted earnings and $13.4 billion sales in the third quarter. Analysts projected 16 cents per share on $13.23 billion sales, but this forecast is better.
Intel’s resurgence continues with a $1.5 billion net income, or 35 cents per share. Intel lost $454 million, or 11 cents per share, the same quarter last year.
Despite these positives, Intel’s sales fell 15%. Sales have dropped for six quarters. Intel CEO Pat Gelsinger predicted “persistent weakness” in all business segments until the end of the year.
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He predicted greater computer chip sales in the fourth quarter. Gelsinger added that cloud organizations are prioritizing artificial intelligence graphics processors over Intel’s central CPUs.
Intel’s smart cost cuts have greatly improved its financial performance. The company’s $3 billion cost-cutting helped this year’s results. Intel has cut nine business lines and saved $1.7 billion since Gelsinger returned.
Intel is still adapting to semiconductor changes. Optimizing costs and making strategic improvements bodes well for the company’s growth and industry competitiveness.