Intel has missed on basically every possible metric. From Revenue to Earnings, Gross Margin, Full Year Outlook gets revised down. It's pretty bad and I doubt many other companies will miss this badly. With that fun start, let's take a closer look.
A high-level look at the various business segments. Everything getting crushed except Mobileye and NEX.
This quarter was of course marked the launch of Intel's very first blockchain-based mining chip. Naturally, this could not have been shipped at a worse time with much of the crypto market down massively.
Unfortunately,
$INTC would miss everything by miles.
The Full Year outlook would get slashed down from $76b Revenue, 52% Margins, and $3.60 EPS.
While all this is bad there we're a few positives. Not many, but a few.
Intel reiterated its Full Year 2022 Free Cash Flow guidance of ($1-$2b).
As well as expanding its partnership with AWS and others like
$LMT,
$META, and even
$NVDA.
And while not part of earnings Intel did announce MediaTek as a foundry Customer. This may give a solid boost heading into the back half of the year.
And finally, Gelsinger admits to the execution issues at Intel.
This is a tough one, given Intel is my largest position I will have to go back and reevaluate my initial thesis. This earnings report, while bad, is not necessarily game-changing.
A lot of the problems do seem very temporary and Intel had been behind the ball to start this year off. I will certainly be looking even closer at the next two earnings reports to gauge if
$INTC is sufficiently on track.