Intel (NASDAQ:INTC) issued a positive revenue forecast for the third quarter following better-than-expected Q2 sales, but flagged significant write-downs and cost-cutting measures that weighed on earnings. Shares fell nearly 9% intra-day Friday.
For Q2, Intel reported an adjusted loss of $0.10 per share on revenue of $12.86 billion, topping the $11.95 billion revenue estimate but missing the expected EPS of $0.01. The earnings miss was largely due to $800 million in impairment charges and $200 million in one-time costs, which together reduced EPS by $0.20.
As part of a cost-saving initiative, the company announced it would halt chip factory projects in Germany and Poland, and slow construction of its Ohio facility to better match demand. Intel also said it plans to cut 15% of its workforce, targeting a headcount of 75,000 by the end of 2025.
For Q3, Intel projected breakeven adjusted EPS on revenue of $12.6 billion to $13.6 billion. Analysts had forecast $0.04 in EPS and $12.66 billion in revenue.
