EXCERPT:
Dave: Intel just reported second quarter earnings after the bell. Yahoo Finance’s Jared Blikre, here on the same day that the CHIPS Act passes the House, which really benefits Intel, and shares are plummeting, Jared.
Jared: Dave, ironic that there is no boost from that. Let’s take a look at the numbers because I actually… Let me begin with a quote from the CEO Pat Gelsinger. Gelsinger, “We must, and will, do better.” And we’re gonna go over those numbers. See if they can improve upon them. Adjusted EPS for the second quarter coming in at 29 cents. The estimate was for double that, 69 cents. More than double that. And then, just going down the numbers, client computing revenue 7.7 billion.
The estimate was for 8.8 billion. Data Center, 4.6 billion, estimate 6.4 billion.
Now on to the forecast. This is where it gets a little bit scary. Seeing adjusted revenue of 65 to $68 billion. Previously, they saw 76. The estimate on Wall Street was about 74 and three quarters billion. Also they are seeing adjusted EPS of 2.3 dollars, $2.30. Previously, they saw $3.60. Estimate was for $3.39. Adjusted gross margin for the full year seeing 49% and the estimate was for higher at 51.8%.
Finally, capital expenditures, $23 billion, whereas before they saw 27 billion. The Street had an estimate a little bit lower than that. They are in the midst of a turnaround strategy right now. And execution wise, we gotta wonder if this is just an idiosyncratic story or if this is just about the industry as a whole.
I want to go to the YFi Interactive, and we’re seeing the shares down about nine, 10% right now. Actually,7 3/4, but let’s check out a year-to-date chart, is down 23%. CHIPS being very highly levered to the economy. We did get that negative GDP print earlier today. That’s backwards looking, but everybody wants to know, are people still buying chips and are our manufacturers able to deliver them to market?