Intel’s (INTC) stock is up 5% after the microchip and semiconductor company issued strong forward guidance that impressed analysts and investors.
The guidance was announced along with better-than-expected third-quarter financial results from Intel.
The company posted earnings per share (EPS) of $0.17 U.S., which was much better than a loss of $0.02 U.S. that had been expected on Wall Street.
Revenue in the quarter came in at $13.28 billion U.S., which was better than the $13.02 billion U.S. forecast on Wall Street.
However, while the top and bottom-line numbers were strong, Intel’s revenue declined 6% from a year earlier.
As part of an ongoing cost reduction plan, Intel took $2.8 billion U.S. in restructuring charges during the quarter.
The company is in the process of switching to not only designing microchips and semiconductors by manufacturing them as well.
As such, Intel is in the process of eliminating 16,500 employees and reducing its real estate assets. The job cuts should be completed by the fourth quarter of 2025.
Intel recently launched its Xeon 6 server processor and Gaudi A.I. accelerator chip.
Sales of the Gaudi chip have been slower than Intel anticipated and the company will not reach its $500 million U.S. revenue target this year, said the company.
Intel also recently announced plans to turn its foundry business into an independent subsidiary, which would allow for outside funding.
In terms of guidance, Intel forecast earnings per share of $0.12 U.S. and revenue of $13.3 billion U.S. to $14.3 billion U.S. in the current fourth quarter of the year.
That guidance was much better than earnings of $0.08 U.S. a share and revenue of $13.66 billion U.S. expected on Wall Street, sending the company’s stock higher.
Before today (Nov. 1), Intel’s stock had declined 55% this year to trade at $21.52 U.S. a share.
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