Published , by Bill Lavoy
Published , by Bill Lavoy
Intel (INTC) released their Q3 2022 earnings results Thursday, revealing that they beat on expected EPS and were in-line with revenue projections. While that is good news for the company, they lowered guidance for both Q4 2022 and FY 2022.
Intel posted their full Q3 2022 earnings report to their investor relations website on Thursday. While it’s notable that they met Q3 2022 expectations, all eyes quickly turned to Intel lowering guidance for both Q4 2022 and their FY 2022.
That’s a significant reduction in expectations, and guidance seems more interesting to investors than the previous quarter’s performance. With much of the world worrying about a potential recession, seeing companies like Intel reduce guidance expectations confirms financial uncertainty moving forward. At the same time, letting your investors know that you expect a rocky road ahead is better than underperforming three months down the line. It also creates a scenario where Intel could outperform expectations and then come out looking great during Q4 2022 and FY 2022 results.
Intel also announced that the company is aiming for $10 billion in annual reductions and gains by 2025. This will begin with $3 billion in cost reductions in 2023, and grow to $8 billion to $10 billion in gains and reductions by the end of 2025. It's important to note that this isn't just straight cost cutting, as gains would imply the company will look to grow revenue to reach that goal.
For more information on tech and gaming companies reporting in Q3 2022, stay tuned to the Market News tag on Shacknews.