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Intel (INTC) earnings Q4 2021

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During an event about the continuing supply chain issues in Washington DC’s South Court Auditorium, President Joe Biden slaps Intel CEO Patrick Gelsinger. The event was held in Washington DC’s Washington Executive Office Building (January 21, 2022). Gelsinger revealed that Intel Corp will invest an initial $20 Billion to build a new Ohio semiconductor manufacturing facility.

Chip Somodevilla | Getty Images

IntelEarnings for fiscal fourth-quarter ended December 26, 2016, after the bell. Even though there was a slight beat, shares fell 3.5% after-hours.

Here’s how Intel did versus Refinitiv consensus estimates:

  • EPS: $1.09, adjusted, versus $0.91 expected
  • Revenue: Adjusted $19.5 billion versus expected $18.31 trillion

Intel forecasts $18.3 adjusted sales for the first quarter 2022. This is higher than consensus analysts’ expectations of $17.62 million. 

The largest Intel business, Intel’s Client Computing Group was down by 7% over the year to $10.1 million, although it still beat analysts average estimate at $9.6 billion according to FactSet. Also, the Data Center Group’s revenue rose 20% to $7.3B, which is well above analysts’ estimate of $6.7B.

Pat Gelsinger took over as Intel CEOJust under one year ago, Intel embarked on an extensive capital investment period. Intel, under Gelsinger announced that it would continue manufacturing its PCs and server chips, but will also start to make designs from other companies in a strategic shift.

This strategy calls for new investments and infrastructure.

Intel announcedIt announced last week that it would build an Ohio chip-making facility. This complex could accommodate eight fabs or factories and production is expected to start in 2025. Intel claimed it would spend at least $20billion in order to put the first two factories into operation.

It is linked to the ultimate Ohio complex size legislation that would result in $52 billionSubsidy funding to semiconductor companies. If subsidies are approved, Intel could invest as high as $100 billion. Gelsinger was there last week with President Biden to urge Congress to approve legislation for full funding.

Following plans, the Ohio investment is made last yearArizona will spend $20 billion to expand an existing facility.

Intel will launch its February 2012 presentation a broader overview of its strategy and technology roadmapInvestors closely monitor Intel’s operational margins when it invests into additional production capacity.

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