Intel Stock has signaled a beat, so why is the stock falling?

In this video I will review Intelit is (NASDAQ: INTC) Report on fourth quarter results and talks about its plans for the next two years. You can find the video below, but here are some highlights.

Revenue summary

  • For the fourth quarter, Intel reported earnings per share of $1.09, down 26% year over year, beating its own guidance by $0.19.
  • Revenue reached $19.5 billion, up 4% year-over-year (YOY) and beating estimates of $1.2 billion.
  • Gross margin was 55.4%, 1.9 percentage points above forecast and down 4.6 percentage points year-on-year.
  • Full-year revenue was $74.7 billion, up 2% year-on-year and beating estimates of $1.2 billion. Earnings per share (EPS) for the full year came in at $5.47, up 7% year on year, beating forecast by $0.19.
  • Revenue forecast for the first quarter is expected to be $18.3 billion, down 1% year-on-year, and gross margin at 52%, down 6.8 percentage points year-on-year. This is the result of large investments and the ramp-up of the 10 nanometer product, which was mentioned in the previous quarter.
  • Intel increased its dividend by 5%.
  • Expect more information on Investor Day, February 17.
  • The CHIPS law is progressing and could affect the size of the new plant in Ohio. Regardless of the outcome, Intel will build one there.

For complete information, watch the video below and consider subscribing.

*The stock prices used were the closing prices on January 26, 2022. The video was published on January 27, 2022.

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Neil Rozenbaum owns Intel. The Motley Fool owns and recommends Intel. The Motley Fool recommends the following options: $57.50 long calls on Intel in January 2023 and $57.50 short puts on Intel in January 2023. The Motley Fool has a disclosure policy. Neil is affiliated with The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn extra money supporting his channel. His opinions remain his own and are not affected by The Motley Fool.

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