Intel (INTC) Q4 2024 Earnings Report: Strong Performance Offset by Poor Guidance

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Intel Reports Mixed Earnings for Q4 2024

Intel Corporation (NASDAQ: INTC) has released its earnings for the fourth quarter of 2024, showcasing results that generally exceeded Wall Street’s forecasts. However, the company’s future guidance is perceived to be lackluster.

Financial Performance Overview

For the quarter ending December 31, 2024, Intel recorded a non-GAAP revenue of $14.26 billion, surpassing analyst expectations of $13.81 billion.

Revenue Breakdown

Here’s a summary of Intel’s revenue performance for Q4 2024 compared to prior quarter and consensus estimates:

Segment Analysis

The following chart depicts the performance of Intel’s primary business segments, including Data Center and AI (DCAI) and Client Computing Group (CCG), comparing their results to Wall Street’s expectations:

Margins and Earnings Per Share

In terms of profitability, Intel achieved a non-GAAP gross margin of 42.1%, exceeding its guidance of 39.5%. Despite challenges related to increased production costs for AI products at its high-volume facility in Ireland, this positive outcome marks a significant beat on expectations.

Furthermore, the company reported a non-GAAP earnings per share (EPS) of $0.13, slightly above the consensus estimate of $0.12.

Outlook for 2025

Leadership Transition

This earnings report is significant as it is the first under interim leadership following the resignation of CEO Pat Gelsinger in December 2024. Intel is currently being guided by two interim co-CEOs, David Zinsner and Michelle (MJ) Johnston Holthaus.

Investor Reactions

Following the earnings announcement, Intel’s stock showed a favorable reaction, rising approximately 2% in after-hours trading. Investors seem to appreciate the overall performance metrics. However, there are lingering concerns regarding the company’s weak guidance for the upcoming quarter, which hints at further declines in revenue and margins, with nearly stagnant non-GAAP EPS projections.

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