Intel shares jump as it lays out cost-cutting plans

Shares in chipmaker Intel were rocketing in after-hours trading on Thursday, after the company posted a beat on quarterly earnings, and laid out plans for billions of dollars worth of cost cuts.

The firm reported third-quarter revenue oof $15.39bn, which was down from $19.9bn year-on-year and made for the ninth consecutive quarter of yearly declines.

It was, however, above the $15.31bn analysts had pencilled in.

Intel’s net income came in at $1.01bn, or 25 cents per share, plummeting from the $6.82bn, or $1.67 per share it recorded at the same time last year.

After restructuring adjustments and other items, however, Intel said its earnings fell to 59 cents from $1.45, which was still well above the 34 cents analysts were expecting.

The company said that, having spent $664m on restructuring in the quarter, it was expecting cost reductions of $3bn in 2023, rising to between $8bn and $10bn in annualised cost and efficiency improvements by the end of 2025.

“Despite the worsening economic conditions, we delivered solid results and made significant progress with our product and process execution during the quarter,” said chief executive officer Pat Gelsinger.

“To position ourselves for this business cycle, we are aggressively addressing costs and driving efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future.”

Shares in Intel closed down 3.45% on Nasdaq at $26.27, before the results were released, and were last up 4.68% in after-hours trading.

Reporting by Josh White for Sharecast.com.