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Intel Stock Reported a Beat, So Why Is the Stock Down?

In this video, I will be going over Intel's (NASDAQ: INTC) Q4 earnings report and talking about its plans for the next couple of years. You can find the video below, but here are some highlights.

Earnings summary

  • For the fourth quarter, Intel reported earnings per share of $1.09, a decrease of 26% year over year, beating its own guidance by $0.19.
  • Revenue came in at $19.5 billion, growing 4% year over year (YOY) and beating estimates by $1.2 billion.
  • Gross margin was 55.4%, 1.9 percentage points above guidance and down 4.6 percentage points YOY.
  • Full-year revenue came in at $74.7 billion, growing 2% YOY and beating estimates by $1.2 billion. Full-year earnings per share (EPS) came in at $5.47, up 7% YOY, beating guidance by $0.19.
  • Revenue guidance for Q1 is expected to be $18.3 billion, down 1% YOY, and gross margin 52%, down 6.8 percentage points YOY. This is the result of big investments and ramping up of the 10-nanometer product, which was mentioned in the previous quarter.
  • Intel raised dividends by 5%.
  • Expect more information on investor day, February 17.
  • The CHIPS Act is progressing, and it may affect the size of the new factory in Ohio. Regardless of the outcome, Intel will build one there.

For the full insights, do watch the video below, and consider subscribing.

*Stock prices used were the closing prices of Jan. 26, 2022. The video was published on Jan. 27, 2022.

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Neil Rozenbaum owns Intel. The Motley Fool owns and recommends Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.


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