SANTA CLARA, Calif., Jan. 26, 2022 — Intel Corporation today reported fourth-quarter and full-year 2021 financial results. The company also announced that its board of directors approved a cash dividend increase of five percent to $1.46 per share on an annual basis. The board declared a quarterly dividend of $0.365 per share on the company’s common stock, which will be payable on March 1 to shareholders of record as of February 7.
▪ Fourth-quarter GAAP revenue was $20.5 billion, exceeding October guidance by $1.3 billion and up 3 percent year-over-year (YoY). Fourth-quarter non-GAAP revenue was $19.5 billion, exceeding October guidance by $1.2 billion. Full-year GAAP revenue set an all-time Intel record of $79.0 billion, up 1 percent YoY.
▪ Delivered GAAP fourth-quarter earnings per share (EPS) of $1.13, exceeding October guidance by 35 cents. Fourth-quarter non-GAAP EPS was $1.09, exceeding October guidance by 19 cents.
▪ In 2021, Intel generated $30.0 billion of cash from operations and $11.3 billion of free cash flow (FCF).
▪ Forecasting first-quarter 2022 revenue of approximately $18.3 billion; expecting first-quarter EPS of $0.70 (non-GAAP EPS of $0.80).
▪ Announces five percent increase to quarterly cash dividend.
“Q4 represented a great finish to a great year. We exceeded top-line quarterly guidance by over $1 billion and delivered the best quarterly and full-year revenue in the company’s history,” said Pat Gelsinger, Intel CEO. “Our disciplined focus on execution across technology development, manufacturing, and our traditional and emerging businesses is reflected in our results. We remain committed to driving long-term, sustainable growth as we relentlessly execute our IDM 2.0 strategy.”
Q4 2021 Financial Highlights
|Q4 2021||Q4 2020||vs. Q4 2020||Q4 2021||Q4 2020||vs. Q4 2020|
|Revenue ($B)||$20.5||$20.0||up 3%||$19.5||$18.9||up 4%|
|Gross margin||53.6%||56.8%||down 3.2 ppt||55.4%||60.0%||down 4.6 ppt|
|R&D and MG&A ($B)||$6.0||$5.4||up 11%||$5.8||$5.2||up 11%|
|Operating margin||24.3%||29.5%||down 5.1 ppt||25.9%||32.4%||down 6.6 ppt|
|Tax rate||11.0%||21.8%||down 10.8 ppt||11.7%||21.7%||down 10 ppt|
|Net income ($B)||$4.6||$5.9||down 21%||$4.5||$6.1||down 27%|
|Earnings per share||$1.13||$1.42||down 21%||$1.09||$1.48||down 26%|
In the fourth quarter, the company generated $5.8 billion in cash from operations and paid dividends of $1.4 billion.
Full-Year 2021 Financial Highlights
|2021||2020||vs. 2020||2021||2020||vs. 2020|
|Revenue ($B)||$79.0||$77.9||up 1%||$74.7||$72.9||up 2%|
|Gross margin||55.4%||56.0%||down 0.5 ppt||57.7%||59.4%||down 1.7 ppt|
|R&D and MG&A ($B)||$21.7||$19.7||up 10%||$20.9||$18.9||up 10%|
|Operating margin||24.6%||30.4%||down 5.8 ppt||29.7%||33.4%||down 3.7 ppt|
|Tax rate||8.5%||16.7%||down 8.2 ppt||9.1%||16.6%||down 7.5 ppt|
|Net income ($B)||$19.9||$20.9||down 5%||$22.4||$21.6||up 4%|
|Earnings per share||$4.86||$4.94||down 2%||$5.47||$5.10||up 7%|
For the full year, the company generated $30.0 billion of cash from operations, paid dividends of $5.6 billion, and used $2.4 billion to repurchase 39.5 million shares of stock.
Business Unit Summary
|Key Business Unit Revenue and Trends||Q4 2021||vs. Q4 2020||2021||vs. 2020|
|CCG||$10.1 billion||down||7%||$40.5 billion||up||1%|
|DCG||$7.3 billion||up||20%||$25.8 billion||down||1%|
|Internet of Things|
|IOTG||$1.1 billion||up||36%||$4.0 billion||up||33%|
|Mobileye||$356 million||up||7%||$1.4 billion||up||43%|
|NSG||$1.0 billion||down||18%||$4.3 billion||down||20%|
|PSG||$484 million||up||15%||$1.9 billion||up||4%|
Fourth-quarter revenue was led by an all-time record quarter for our Data Center Group (DCG), with strong server recovery in enterprise and government. The Internet of Things Group (IoTG) had a record quarter, reflecting strong demand on recovery from COVID-19 impacts. The Client Computing Group (CCG) delivered another $10 billion quarter, proving that PCs are more essential than ever.
▪ Appointed David Zinsner as Executive Vice President and Chief Financial Officer, and announced that Executive Vice President Michelle Johnston Holthaus will lead Intel’s Client Computing Group.
▪ Announced plans to take Mobileye public in the United States in mid-2022 via an initial public offering of newly issued Mobileye stock.
▪ Completed the first closing of the sale of our NAND memory business to SK hynix, Inc.
▪ Announced initial investment of more than $20 billion to build two new leading-edge chip factories in Ohio, where we are establishing the first advanced semiconductor campus in the “Silicon Heartland” of the Midwest. This will be Intel’s first new manufacturing site location in 40 years.
▪ Launched the 12th Gen Intel® Core™ processor family, including the all-new 12th Gen Intel Core H-series mobile processors led by the Intel Core i9-12900HK, the fastest mobile processor ever created.1 The 12th Gen Intel Core family will include 60 processors and more than 500 designs.
▪ Announced that Habana Labs’ Gaudi AI Accelerators power Amazon EC2 DL1 Instances.
▪ Unveiled key packaging, transistor and quantum physics breakthroughs fundamental to advancing and accelerating computing well into the next decade and outlined its path toward more than 10x interconnect density improvement in packaging with hybrid bonding and 30% to 50% area improvement in transistor scaling.
▪ Began shipping Intel® Arc™ discrete graphics products (code-named “Alchemist”) to OEM/ODM customers, with more than 50 design wins.
▪ Released the oneAPI 2022 toolkits to expand features to provide developers greater utility and architectural choice to accelerate computing.
▪ Introduced Mobileye updates, including the new EyeQ Ultra purpose-built SoC for autonomous vehicles, plans to deliver what is expected to be the world’s first level 4 autonomous vehicle for consumers with Geely’s Zeekr brand in 2024, and collaboration with Volkswagen Group and Ford to apply Mobileye’s mapping technology in driver assistance systems.
▪ Ranked #2 on JUST Capital’s 2022 “Just 100” list, which reflects the performance of America’s largest publicly traded companies on the issues that matter most in defining just business behavior today.
Additional information regarding Intel’s results can be found in the Q4’21 Earnings Presentation available at www.intc.com.
Intel’s guidance for the first quarter includes both GAAP and non-GAAP estimates. Reconciliations between GAAP and non-GAAP financial measures are included below. Our first-quarter business outlook includes an additional week in the first quarter due to 2022 being a 53-week year.
|Revenue||$18.3 billion||$18.3 billion^|
|Earnings per share||$0.70||$0.80|
Actual results may differ materially from Intel’s Business Outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.
Intel will hold a public webcast at 2 p.m. PST today to discuss the results for its fourth quarter of 2021. The live public webcast can be accessed on Intel’s Investor Relations website at www.intc.com. The Q4’21 Earnings Presentation, webcast replay, and audio download will also be available on the site.
Intel plans to report its earnings for the first quarter of 2022 on April 28, 2022 promptly after close of market; related materials will be available at www.intc.com. A public webcast of Intel’s earnings conference call will follow at 2 p.m. PDT at www.intc.com.
Source: Intel Corp.