Intel Q4 had a revenue of US $20.5 billion and a net profit of US $4.6 billion, a year-on-year decrease of 21%

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Tencent technology news on January 27, after the stock market closed on Wednesday, US local time, chip giant Intel announced its fourth quarter earnings as of December 26, 2021. According to the financial report, Intel’s revenue in the fourth quarter was US $20.5 billion, a year-on-year increase of 3%; The net profit was USD 4.6 billion, a year-on-year decrease of 21%; Earnings per share was $1.13, down 21% year-on-year. Although Intel’s performance broke market expectations, it still fell by more than 2% in after hours trading.
The following are the highlights of Intel’s fourth quarter earnings:
— the revenue was US $20.5 billion, US $1.3 billion higher than the expectation in October last year,
Compared with us $20 billion in the same period of last year, it increased by 3%, exceeding the US $18.31 billion generally expected by analysts;
— net profit of US $4.6 billion, down 21% from US $5.9 billion in the same period last year;
— earnings per share (EPS) was US $1.13, US $0.35 higher than the expectation in October, down 21% from US $1.42 in the same period last year, exceeding the US $0.91 generally expected by analysts;
— the gross profit margin was 53.6%, down 3.2% from 56.8% in the same period last year;
— the operating profit margin was 24.3%, down 5.1% from 29.5% in the same period last year;
— R & D and M & A expenditure was US $6 billion, an increase of 4% compared with us $5.4 billion in the same period last year;
— the tax rate was 11%, down 10.8% from 21.8% in the same period last year;
— in the fourth quarter, Intel generated $5.8 billion in operating cash and paid dividends of $1.4 billion;
The following are the key points of Intel’s financial report for the whole year of 2021:
— the revenue was 79 billion US dollars, an increase of 1% compared with 77.9 billion US dollars in the same period of last year;
— net profit was 19.9 billion US dollars, down 5% from 20.9 billion US dollars in the same period last year;
— earnings per share (EPS) was $4.86, down 2% from $4.94 in the same period last year;
— the gross profit margin was 55.4%, down 0.5% from 56% in the same period last year;
— the operating profit margin was 24.6%, down 5.8% from 30.4% in the same period of last year;
— R & D and M & A expenditure was US $21.7 billion, an increase of 10% compared with us $19.7 billion in the same period of last year;
— the tax rate was 8.5%, down 8.2% from 16.7% in the same period last year;
In 2021, Intel generated $30 billion in cash from its operations, paid $5.6 billion in dividends, and repurchased 39.5 million shares with $2.4 billion.
Intel said it expected adjusted revenue to reach $18.3 billion in the first quarter of 2022, exceeding analysts’ consensus expectation of $17.62 billion.
In addition to announcing the fourth quarter and full year financial results of 2021, Intel also announced that its board of directors approved a 5% increase in cash dividend of $1.46 per share on an annual basis. The board of directors declared a quarterly dividend of $0.365 per share on the company’s common stock to be paid to shareholders with records on February 7 on March 1.
Pat Gelsinger, Intel CEO, said: “The fourth quarter brought a great end to this great year. Our quarterly revenue exceeded the performance outlook by $1 billion, creating the best quarterly and full year revenue in the company’s history. Our focus on technology development, manufacturing and the implementation of traditional and emerging businesses is reflected in our performance. We will continue to be committed to promoting long-term and sustainable growth, At the same time, we will continue to implement our IDM 2.0 strategy. ”
According to FactSet, sales of Intel’s largest business customer computing group (client computing group) fell 7% year-on-year to $10.1 billion, but still higher than the average analyst estimate of $9.6 billion.
Gelsinger said in an interview that the sales of the customer computing group, including Intel’s personal computer chip business, are declining every year, which is the result of the quarterly adjustment of sales by customers and PC manufacturers. Novel coronavirus pneumonia has been on the rise since 2020, including computer sales in the fourth quarter of last year. “I won’t interpret the quarter on quarter data. Supply constraints are also a factor,” he said
Gelsinger also said he continued to expect strong growth in PC sales. Microsoft reported on Tuesday that the revenue of its personal computer business increased by nearly 16% year-on-year, exceeding expectations. Satya NADELLA, the company’s chief executive, said demand was strong across the business.
Intel data center group’s revenue also exceeded expectations, rising 20% to $7.3 billion, higher than the average expectation of $6.7 billion.
“In the fourth quarter, the performance of the company, enterprises and government departments was strong,” Gelsinger said He added that some customers had trouble obtaining components such as Ethernet power controllers that were needed to complete new servers using Intel chips. The company’s next-generation server chip sapphire rapids will start shipping in this quarter as planned and increase production in the second quarter. Analysts had worried that the chip would delay production because it used a new process.
Mobileye is Intel’s focus on the technology of autopilot. The company reported sales in the fourth quarter of US $356 million, an increase of 7% over the same period last year. Intel said in December that it planned to list the company.
Gelsinger took over as CEO of Intel a year ago and began large-scale capital expenditure. Under his leadership, Intel announced that it would continue to produce its own personal computer and server chips, and would also start producing chips designed by other companies in the process of strategic transformation.

However, this strategy requires new facilities and investment. Intel announced last week that it plans to build a chip production base in Ohio, which is expected to start production in 2025. The base will accommodate eight chip manufacturers. Intel said it would invest at least $20 billion to put the first two plants into operation. “First of all, we have to invest to catch up. We’re lagging behind in capacity, and you know, we’re eager for some redundant capacity,” Gelsinger said
Intel warned last quarter that its profit margin would shrink in the next two to three years as the company invested in improving production capacity. Even if the forecast is lowered, the company’s gross profit margin in the first quarter is expected to be 52%, which is still slightly lower than analysts’ expectations.
The final size of the Ohio project is related to a legislation that will provide $52 billion in subsidies to semiconductor companies. If the subsidy is approved, Intel may spend up to $100 billion. Last week, Gail Singh attended an event with President Biden to encourage Congress to pass the legislation and authorize all the funds allocated by the bill.
Before investing in Ohio, Intel announced last year that it plans to invest $20 billion to expand its existing facilities in Arizona. In February this year, Intel will fully introduce its strategy and technology roadmap to investors. Investors are paying close attention to Intel’s operating profit margin because the company is investing in increasing production capacity. Gail Singh said Intel will show its technology roadmap for consumer and data center chips.
On Wednesday local time, Intel shares closed at $51.69 a share, up 1.35%. But as of the time of this article, the stock had fallen more than 2% in after hours trading and is now at $50.3 a share. (small)