Intel late Thursday posted a larger-than-expected loss for the chipmaker's third quarter on sales that were slightly above views. Intel stock jumped in extended trading as its fourth-quarter outlook was better than feared.
The Santa Clara, Calif.-based company lost 46 cents a share on sales of $13.28 billion in the September quarter. Analysts polled by FactSet had expected Intel to lose 2 cents a share on sales of $13.02 billion. In the year-earlier period, Intel earned 41 cents a share on sales of $14.16 billion.
For the current quarter, Intel forecast adjusted earnings of 12 cents a share on sales of $13.8 billion. That's based on the midpoint of its outlook. Analysts were modeling earnings of 8 cents a share on sales of $13.66 billion. In the year-earlier period, Intel earned 54 cents a share on sales of $15.41 billion.
Intel Chief Executive Pat Gelsinger said the company is making significant progress on its plan to cuts costs.
"Our Q3 results underscore the solid progress we are making against the plan we outlined last quarter to reduce costs, simplify our portfolio and improve organizational efficiency," Gelsinger said in a news release.
Intel is "acting with urgency to position the business for sustainable value creation moving forward," he said.
Intel Stock Rises After Earnings Report
In after-hours trading on the stock market today, Intel stock rose more than 7% to 23.10. During the regular session Thursday, Intel stock sank 3.5% to close at 21.52.
Intel has had a rough year, with its stock down 57% in 2024.
On Aug. 1, Intel badly missed Wall Street's targets for the second quarter and with its guidance for the third quarter. In addition, the chip giant suspended its quarterly dividend and announced a $10 billion cost-reduction plan. That plan included a headcount cut of more than 15%.
Intel is losing market share in PC and server chips to rival Advanced Micro Devices. It also trails Nvidia, AMD and others in making chips for artificial intelligence applications.
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