Intel (INTC, Financial) has projected its fourth-quarter revenue to slightly exceed expectations, fueling optimism that the company can reclaim some lost market share. The announcement led to a significant after-hours stock price increase. Intel anticipates revenues between $13.3 billion and $14.3 billion, surpassing the analyst average estimate of $13.6 billion. Additionally, the company forecasts earnings per share of $0.12, doubling the analyst expectation of $0.06.
Following the news, Intel's stock soared 9.2% in after-hours trading to $23.51, compared to its previous closing price of $21.52. Despite this surge, Intel's stock is down 57% year-to-date. Once the leader in the computer processor industry, Intel is striving to conserve cash to fund its ambitious turnaround strategy, described by CEO Pat Gelsinger as the "boldest transformation plan" in the company's history.
In the previous quarter, Intel announced layoffs, spending cuts, and a suspension of dividends to investors. Now, Gelsinger is under pressure to demonstrate his ability to secure new customer orders to mitigate financial outflows. "This is a crucial period for the company," Gelsinger stated in an interview, emphasizing the numerous steps taken by the company.
For the third quarter, Intel reported an adjusted loss per share of $0.46 and revenue of $13.3 billion, reflecting a 6% decline. Analysts had anticipated a $0.03 loss per share and $13 billion in revenue. Wall Street expects Intel's revenue to begin moderate growth in 2024, though it would still remain over $20 billion below its 2021 peak.
