Intel (INTC, Financial) recently reported its fiscal Q1 results, surpassing analyst expectations but offering a weaker-than-expected forecast. This announcement follows the appointment of the new CEO, Lip-Bu Tan, who plans to implement significant operational and capital expenditure cuts in his first year. The company's stock fell over 4% in after-hours trading as revenue forecasts for the next quarter fell short of analyst predictions.
Intel projects Q2 revenue between $11.2 billion and $12.4 billion, below the anticipated $12.82 billion. The company expects to break even in earnings per share, contrasting with analyst expectations of 6 cents per share. Q1 results showed a net loss of $800 million, or 19 cents per share, due to rising costs and asset impairments, compared to a profit of $2.7 billion and earnings of 63 cents per share in the same period last year.
Under Tan's leadership, Intel plans to streamline operations, aiming to reduce operating expenses to $17 billion for the year, lowering previous estimates. Capital expenditure for 2025 is expected to decrease from $20 billion to $18 billion. The restructuring may involve layoffs, particularly in management roles, although details are yet to be finalized.
