Intel Stock Drops 8 Percent on Weak Q4 Revenue and Ongoing CEO Search
Intel reports fourth-quarter earnings that beat expectations but misses on revenue due to ongoing supply constraints. Investors also express impatience over the prolonged search for a permanent CEO.
Intel stock falls as much as 8 percent after the chipmaker reports lower-than-expected revenue for its fiscal fourth quarter. The company earns $1.28 per share on $18.66 billion in revenue, beating profit estimates but missing revenue expectations. Intel reports that overall revenue climbs 9 percent year over year despite the quarterly shortfall.
The Client Computing Group, which includes PC chips and generates the most revenue for Intel, brings in $9.82 billion but falls short of analyst estimates. Interim CEO Bob Swan notes that supply constraints at the value end of the product range limit sales, though he expects supply and demand to balance by the middle of the year. The Data Center Group also misses expectations with $6.07 billion in revenue as cloud growth slows significantly.
Alongside the financial results, investors focus on Intel's ongoing leadership vacuum. It has been seven months since former CEO Brian Krzanich departed, and Swan tells analysts that the board continues to evaluate candidates with a sense of urgency. The prolonged search for a permanent leader adds to investor uncertainty as the company navigates its supply challenges.