Intel CEO Pat Gelsinger pictured in the course of the ‘Chips for well being’ occasion on the Grischa Hotel on the World Economic Forum in Davos, Switzerland, on May 24, 2022.
Eric Lalmand | Belga Mag | AFP | Getty Images
Intel reduce its quarterly dividend by greater than 65%, from 36.5 cents to 12.5 cents, the chipmaker introduced Wednesday, weeks after the corporate applied a wide-ranging set of value cuts.
Intel shares have been largely flat in pre-market buying and selling Wednesday after the information.
The dividend might be payable on June 1. “Prudent allocation of our owners’ capital is important to enable our IDM 2.0 strategy and sustain our momentum as we rebuild our execution engine,” CEO Pat Gelsinger mentioned in a press launch saying the reduce.
The firm additionally reaffirmed its just lately issued steerage for the primary quarter of 2023. Intel guided to a 15 cent non-GAAP loss per share however did not challenge full-year steerage, citing financial uncertainty.
Intel’s most up-to-date outcomes, a prime and backside line miss and a $664 million internet loss for the fourth quarter of 2022, despatched its share worth sharply down.
Intel’s inventory is down practically 60% from its 2021 excessive, a mirrored image of each a difficult PC market and of company-specific points, together with a surplus of chips and underutilized factories.
The firm mentioned it aimed to ship $3 billion in value financial savings this 12 months, partially by means of compensation cuts. Intel’s fourth-quarter loss was the chipmaker’s largest since 2017.
“No words can portray or explain the historic collapse of Intel,” Rosenblatt analyst Hans Mosesmann wrote after the earnings report.
— CNBC’s Michael Bloom, Jordan Novet and Kif Leswing contributed to this report.
Source: www.cnbc.com”