Intel (INTC) CEO Pat Gelsinger pushed again on the idea that his firm’s turnaround struggles would spell the close of its coveted dividend payout.
“We are committed to the dividend and to a pretty balanced and competitive dividend,” Gelsinger stated on Yahoo Finance Are living (online video above). “We’re also generating massive extended-expression strategic investments, so we’re putting all of that alongside one another and seeking incredibly carefully at the capital allocation priorities for the company general, even as we continue being fully commited to rewarding our shareholders with the dividend.”
The corporation paid out $6 billion in dividends in 2022. But with hard cash flow dropping by about $14 billion yr over yr and results underneath tension in the fourth quarter, some on Wall Road questioned whether it was time for Intel to slice the dividend.
Intel’s fourth-quarter gross sales plunged 32% from the prior 12 months. Product sales in the vital client computing and info middle segments dropped 36% and 33%, respectively.
Here is how the company carried out in Q4 as opposed to Wall Street estimates:
-
Earnings: $14 billion vs. $14.4 billion estimate
-
Modified EPS: $.10 vs. $.19
-
Consumer Computing: $6.6 billion vs. $7.4 billion
-
Datacenter and AI: $4.3 billion vs. $4 billion
Intel inventory was off additional than 6% in the course of Friday’s session as its direction for the first quarter wasn’t considerably greater than its end to 2022.
The business stated it expects earnings of involving $10.5 billion and $11.5 billion, although the Street was looking for $14 billion. Intel also expects gross margins to appear in at 39%, whilst analysts anticipated margins to prime 45.5%.
Intel declined to offer comprehensive-calendar year assistance, citing unstable worldwide economic conditions.
“Even though the corporation is fully commited to a price tag reduction program of $8.-$10. billion by 2025, it does not enable the main manufacturing difficulty,” Citi analyst Chris Danely wrote in a shopper take note. “And we believe that Intel’s ongoing investments in expansion marketplaces may well not accomplish as anticipated. We sustain our Neutral rating on Intel driven by draw back to estimates.”
Brian Sozzi is an editor-at-significant and anchor at Yahoo Finance. Adhere to Sozzi on Twitter @BrianSozzi and on LinkedIn.
For the most up-to-date earnings stories and investigation, earnings whispers and anticipations, and corporation earnings information, simply click below
Study the latest money and company information from Yahoo Finance
Download the Yahoo Finance application for Apple or Android
Abide by Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
