Intel Reports Relatively Strong Q3 2022 Earnings

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Intel (NASDAQ: INTC) has now announced its earnings for the second quarter of 2022, broadly beating consensus expectations regarding its top-line and bottom-line metrics.

Intel (NASDAQ: INTC) Earnings Release for the Third Quarter of 2022

For the three months that ended on the 30th of September 2022, Intel reported $15.3 billion in non-GAAP revenue. The number matched consensus expectations.

(All figures are in billions of dollars)

Here is the performance of Intel's business segments in Q3 2022:

During Q3 2022, Mobileye recorded the highest growth, while DCAI remained the laggard with growth of -27 percent.

The following excerpt from the company's earnings release provides supplemental platform revenue information:

Finally, the company earned $0.59 in EPS (non-GAAP), exceeding consensus expectations by 78 percent.

(All figures are in dollars)

Here is Intel's guidance for the fourth quarter of 2022:

The company is targeting $3 billion in cost reductions for FY 2023.

Investors have reacted positively to Intel's latest earnings release, with the stock currently up over 4 percent in after-hours trading.

Q3 2022 Earnings Context

Intel launched its 13^th generation "Raptor Lake" processors on the 20^th of October, and as per initial reports, the demand for these products is fairly robust. Led by the flagship i9-13900K processor, the 13^th-gen lineup builds on the 12^th-gen's hybrid core architecture. According to Intel, the i9-13900K processor is 11 percent faster than AMD's Ryzen 9 7950X "Zen 4" CPUs.

Back in September, Intel broke ground in Ohio to build a brand-new $20 billion fab facility. Once complete, the project will create 3,000 full-time jobs.

Earlier this week, Intel executed a successful IPO of its autonomous driving unit. Mobileye was able to raise $861 million by floating 41 million shares at $21 per share.

Intel is considering mass layoffs, as per a number of reports in recent days. Oregon Live quoted Intel's CEO Pat Gelsinger, who, in an address to the company's employees, said:

"These are always hard decisions, but our costs are too high and our margins are too low."

Gelsinger went on to note:

"We have to take actions to address them."

Meanwhile, as per a report by IDC earlier in October, global PC shipments totaled 74.3 million units in Q3 2022, corresponding to an annual decline of 15 percent.