Intel's financial results for the fourth quarter and full-year of 2024 show mixed performance, with media outlets cautiously optimistic.
While revenue and earnings have declined year-over-year, analysts and investors are encouraged by Intel's cost reduction efforts and the positive steps taken in the fourth quarter.
The focus on efficiency and profitability, along with the company's strategic initiatives, has been well-received, though concerns about macroeconomic uncertainties and competitive pressures remain.
Revenue for the Data Centre and Artificial Intelligence segment was US$3.39 billion. According to StreetAccount, that's in line with a $3.38 billion consensus.
Intel's interim co-CEOs, Michelle Johnston Holthaus and David Zinsner, highlighted the company's efforts to improve efficiency and profitability through a cost reduction plan and a renewed focus on its product portfolio.
“The fourth quarter was a positive step forward as we delivered revenue, gross margin and EPS above our guidance,” said Michelle Johnston Holthaus, interim co-CEO of Intel and CEO of Intel Products. “Our renewed focus on strengthening and simplifying our product portfolio, combined with continued progress on our process roadmap, is positioning us to better serve the needs of our customers. Dave and I are taking actions to enhance our competitive position and create shareholder value.”
“The cost reduction plan we announced last year to improve the trajectory of the company is having an impact,” said David Zinsner, interim co-CEO and chief financial officer of Intel. “We are fostering a culture of efficiency across the business while driving toward greater returns on our invested capital and improved profitability. Our Q1 outlook reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics. We will remain highly focused on execution to build on our progress and unlock value.”
Here are some key highlights.
Fourth-Quarter 2024 Financial Results:
Revenue: $14.3 billion, down 7% year-on-year.
Earnings Per Share (EPS): $0.03 on a GAAP basis, $0.13 on a non-GAAP basis, $0.01 better than the analyst estimate of $0.12.
Gross Margin: 39.2%, down 6.5 percentage points year-over-year.
Operating margin: 2.9%, down 13.9 percentage points year-over-year.
Net income: $0.1 billion.
Full-Year 2024 Financial Results:
Revenue: $53.1 billion, down 2% year-on-year.
Earnings Per Share (EPS): $(4.38) on a GAAP basis, $(0.13) on a non-GAAP basis.
Gross Margin: 32.7%, down 7.3 percentage points year-over-year.
Operating Margin: (22.0)%, down 22.2 percentage points year-over-year.
Net income: $18.8 billion.
Outlook for Q1 2025:
- Revenue Forecast: $11.7 billion to $12.7 billion. Analysts were looking for $12.85 billion.
- EPS Forecast: $0.27 on a GAAP basis, $0.00 on a non-GAAP basis.
At the time of writing, Intel Corp's (NASDAQ: INTC) share price was US$20.01, up $0.26 (1.32%). Its market cap was approximately $86.3 billion.
