Summary: On April 29, processor giant Intel announced its first quarter 2022 financial report, with revenue of $18.4 billion in the quarter, down 7% year-on-year, but still better than the market's expectation of $18.3 billion. Net profit was $8.1 billion, up 141% year-over-year. Adjusted EPS was $0.87 per share, also up 141% year-over-year, beating the market average expectation of $0.81.
On April 29, processor giant Intel announced its first quarter 2022 financial report, with revenue of $18.4 billion, down 7% year-on-year, but still better than the market's expectation of $18.3 billion. Net profit was $8.1 billion, up 141% year-over-year. Adjusted EPS was $0.87 per share, also up 141% year-over-year, beating the market average expectation of $0.81.
Although Intel's earnings results outperformed market expectations, its operating outlook for the second quarter was lower than market expectations, resulting in Intel's closing stock price falling nearly 4% after hours on the day.
Intel noted that customer computing group (CCG) revenue was $9.3 billion, down 13 percent from the same period in 2021, down $9.42 billion from analysts' consensus estimates, Customer Computing Group (DCAI) revenue was $6 billion, up 22 percent from the same period in 2021, and Networking and Edge Computing (NEX) revenue was $2.2 billion, up 23 percent from the same period in 2021, up 23 percent from the same period in 2021, Intel noted. Accelerated Computing Systems and Image Systems Group (AXG) revenue of $219 million, up 21% from the same period in 2021, Autonomous Driving Technology Subsidiary Mobileye revenue of $394 million, up 5% from the same period in 2021, and Wafer Foundry revenue of $283 million, up 175% from the same period in 2021.
Intel CEO Pat Gelsinger said the first quarter of 2022 was strong, with revenue and net profit beating expectations. Faced with a $1 trillion market opportunity, Intel remains focused on the IDM 2.0 strategy. Intel executed this strategy in the first quarter, achieving key product and technology milestones and announcing plans to expand manufacturing capabilities in the U.S. and Europe to meet the continued demand for semiconductors and drive a more balanced and resilient global supply chain.
For the second quarter of the operating outlook, Intel Chief Financial Officer David Zinsner stressed that the inventory challenge should continue into the second quarter, but will ease in the second half of the year. The pandemic has exacerbated consumer concerns about supply, and inflation could reduce annual PC shipments. Second-quarter revenue is expected to be approximately $18 billion at $0.7 per EPS, lower than analysts' estimates of average revenue of $18.38 billion and adjusted EPS of $0.83 per share.
Editor: Xin ZhiXun - Lin Zi