Intel shares jump on cost-cutting measures, Mobileye IPO despite lack of revenue and weak forecast – Intel (NASDAQ:INTC)

Semiconductor Company intel company INTC announced its third quarter (Q3) financial results after the market close on Thursday. Here are the main highlights.

What happened: The Santa Clara, Calif.-based company’s third-quarter revenue was $15.3 billion. That’s down 20% year over year.

Total revenue missed Street’s estimate of $15.43 billion according to data from Benzinga Pro.

See also: Intel raises $681 million from its Mobileye self-driving tech IPO

Non-GAAP revenue was down 15% year over year taking into account restructuring charges of $664 million.

The company’s third-quarter earnings per share were 59 cents, beating Street’s estimate of 34 cents per share.

Revenue by segment was:

  • Client Computing Group: $8.1 billion, -17% year over year
  • Datacenter and AI Group: $4.2 billion, -27% year-over-year
  • Network and Edge Group: $2.3 billion, +14% year-over-year
  • Accelerated Computing Systems and Graphics Group: $185 million, +8% year-over-year
  • Mobileye: $450 million, +38% year-over-year
  • Intel Foundry Services: $171 million, -2% year-over-year

“Despite deteriorating economic conditions, we delivered strong results and made significant progress in executing our products and processes during the quarter,” said Intel’s CEO. Pat Gelsinger said.

Related Link: Intel Raises $861 Million From the IPO of Its Mobileye Self-Driving Technology

And after: Intel expects fourth-quarter revenue to be between $14 billion and $15 billion. For the full fiscal year, Intel forecasts revenue of between $63 billion and $64 billion. Analysts have a full year estimate of $65.26 billion according to Benzinga Pro data.

Intel is focused on reducing costs going forward with a $3 billion savings plan in 2023 and cost savings of $8-10 billion per year by 2025.

“To position ourselves for this economic cycle, we are aggressively addressing costs and optimizing efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future,” Gelsinger said. .

The company highlighted the IPO of Global mobileye MBLY it happened this week. Intel said it believes the IPO will “unlock value for Intel shareholders.”

INTC Price Action: Intel shares are up 6% at $27.90 in after-hours trading Thursday.

Learn more about what analysts are saying about Intel here.