Intel’s then interim CEO and CFO Bob Swan (Bob Swan) responded at the inauguration ceremony of the company’s R&D facility in Bangalore, India, on November 15, 2018.
Samyukta Lakshmi | Bloomberg | Getty Images
Intel shares closed up 6.46% on Thursday, after the company announced that its revenue and revenue exceeded personal expectations and exceeded personal expectations.
A few minutes before the market closed, detailed information on Intel’s earnings could be obtained through financial channels. After that, Intel gave up earnings and its stock price fell by more than 2%.
The strong earnings report covers the quarter that ended in December last year and is a critical moment for the chip giants, because Thursday’s earnings report is the last time Bob Swan will serve as CEO. On February 1
Intel’s approach is as follows:
- Earnings per share (EPS): The adjusted price is US$1.52, which is higher than the Refinitiv consensus estimate of US$1.10.
- income: 20 billion US dollars, while the Refinitiv consensus estimate is 17.49 billion US dollars.
- prediction: Revenue in the first quarter of 2020 was $18.6 billion, and earnings per share were $1.03.
Intel also increased its cash dividend by 5% to $1.39 per share. However, its own forecasts for this quarter’s revenue, earnings per share, and operating profit margin all fell year-on-year.
Intel said that the strong performance of personal computer sales has exceeded its expectations. It said that sales of personal computers equipped with Intel chips increased by 33% over the same period last year, especially notebook computers. In the past year, PC sales have been strong because people who work from home or go to school want to upgrade their computers.
The change in leadership is not the only challenge Intel faces. In December of last year, the radical hedge fund Third Point urged Intel’s board of directors to make several changes to the company, including considering whether to outsource chip production or divest part of its business (such as acquisitions).
Third Point CEO Dan Loeb also talked about Intel’s biggest problem in a letter last December. He pointed out that Intel lags behind Asian chip foundries in its ability to manufacture the most advanced processors.
Since 2013, Intel’s latest chips have adopted a 14-nanometer process, while rival chips manufactured by TSMC (TSMC) currently use a 5-nanometer process. A smaller process is better, because more transistors can fit into the same chip, which increases power and efficiency.
Intel customers such as Apple, Amazon, and Microsoft have developed their own processors or have expressed their intention to do so.
Gelsinger recently served as CEO of VMWare. He has a technical background and is expected to push Intel to become more competitive in chip manufacturing. Intel said that it has begun production of 10 nanometer chips this quarter and will start producing more nanometer chips this quarter.
Intel said that its subsidiary Mobileye, which is engaged in self-driving car technology, had a 39% increase in sales this quarter over the same period last year. However, Mobileye is still only a small part of Intel-in 2020, the company’s sales will be 967 million US dollars, while Intel’s PC Group’s sales this year were 40.1 billion US dollars.