Intel’s (NASDAQ: INTC) woes continued on Wednesday as the chip giant, in a disappointing move for investors announced that its Board of Directors had decided to reduce its quarterly dividend by 66% to $0.125 per share from a prior $0.365 and $0.50 on an annualized basis. The dividend will be payable on June 1 to stockholders of record on May 7, 2023.
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The company stated that the decision to slash the dividend “reflects the board’s deliberate approach to capital allocation and is designed to best position the company to create long-term value.”
Moreover, INTC reiterated its dismal Q1 outlook of revenues in the range of $10.5 billion to $11.5 billion and an adjusted loss of $0.15 per share versus analysts’ estimates of $14.02 billion in revenue along with an adjusted EPS of $0.25. This disappointing outlook is after the company’s disastrous Q4 results and an order delay with Taiwan Semiconductor.
Analysts are sidelined about INTC stock with a Hold consensus rating based on three Buys, 16 Holds and eight Sells.
