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.
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.
