Intel (INTC) 2nd Quarter 2023 Report: Company Returns to Profitability
The American company Intel, one of the leading manufacturers of computer components in the world, has presented its financial results report for the second quarter of 2023. The report reflects the following indicators (GAAP) compared to the previous year:
- Revenue amounted to $12.95 billion, which is a decrease of 15%.
- Net profit amounted to $1.47 billion, while a loss of $0.45 billion was recorded in the second quarter of 2022.
- Earnings per share (EPS) amounted to $0.35, while a loss of $0.11 was recorded in the second quarter of 2022.
Table 1: Financial results of Intel for the second quarter of 2023
| Indicator | Value | Change compared to the previous year |
|---|---|---|
| Revenue | $12.95 billion | -15% |
| Net profit | $1.47 billion | Positive dynamics (compared to a loss = $0.45 billion) |
| Earnings per share | $0.35 | Positive dynamics (compared to a loss = $0.11) |
The decline in revenue has continued for six consecutive quarters, but the company is pleasing investors by finally returning to profitability. According to Intel’s forecasts, weak demand in all of the company’s key business segments will persist until the end of 2023.
In the first half of this year, Intel incurred a net loss of $1.295 billion, compared to a profit of $7.659 billion in the previous year. The company does not disclose diluted earnings per share and revenue for January-June.
However, in the second quarter, Intel was able to achieve a net profit of $1.481 billion, compared to a loss of $454 million in the first half of 2022. Diluted earnings per share in the reporting period amounted to $0.35, while a loss of $0.11 was recorded last year. The company’s revenue decreased by 20.1% to $12.949 billion, exceeding analysts’ expectations of $12.09 billion.
In the third quarter, Intel expects revenue in the range of $12.9 billion to $13.9 billion and earnings per share of $0.04.
Intel’s stock prices rose by 7.1% after the close of regular trading in the United States.
Founded in 1968, Intel is one of the leading American corporations specializing in the production of electronic devices and computer components, including microprocessors
Table 3: Intel’s forecasts for the third quarter of 2023
| Indicator | Range of values |
|---|---|
| Revenue | $12.9 billion – $13.9 billion |
| Earnings per share | $0.04 |
Is it worth buying Intel shares now?
From the analysis of Intel’s financial results for the second quarter of 2023, it can be seen that the company experienced a 15% decrease in revenue compared to the previous year. However, investors are pleased to see that the company has returned to profitability.
Although the decline in revenue has been ongoing for six consecutive quarters, Intel’s forecasts indicate that weak demand will persist in all major business segments until the end of 2023. This could have a negative impact on the company’s future financial results.
In the first half of this year, Intel incurred a net loss of $1.295 billion, which is a significant decrease compared to the $7.659 billion profit the previous year. However, in the second quarter, the company was able to achieve a profit of $1.481 billion, indicating some recovery.
Intel’s stock prices rose by 7.1% after the close of trading in the US, possibly due to the company’s return to profitability and exceeding analysts’ revenue expectations.
Overall, when making a decision to buy Intel shares, investors should take into account the company’s declining revenue and weak demand in its major business segments, as well as forecasts for this situation to continue until the end of 2023. However, positive factors include the company’s return to profitability and surpassing analysts’ revenue expectations. It is also important to consider each investor’s individual financial goals and risk tolerance.
