Intel closed the year with a deep dive

Intel Corporation recently released its Q4 2024 earnings report, providing insights into its financial performance and future outlook. Here’s a detailed analysis of the key points from the report:

Intel reported $14.3 billion in revenue for Q4 2024, a 7% decrease year-over-year. The company’s gross margin was 39.2%, down from 45.7% in Q4 2023. Despite the decline, Intel managed to achieve adjusted earnings per share (EPS) of $0.13, slightly above Wall Street’s consensus estimate of $0.12.

Full-Year Results

For the full year 2024, Intel reported $53.1 billion in revenue, a 2% decrease compared to 2023. The company’s full-year gross margin was 32.7%, down from 40.0% in 2023. Intel’s full-year EPS was a loss of $4.38, compared to a loss of $0.13 on a non-GAAP basis.

Understandably, Intel provided a cautious outlook for Q1 2025, forecasting revenue between $11.7 billion and $12.7 billion. The company expects first-quarter EPS to be a loss of $0.27 on a GAAP basis and $0.00 on a non-GAAP basis. This outlook reflects seasonal weakness, macroeconomic uncertainties, and competitive dynamics1.

Intel’s interim co-CEOs, David Zinsner and Michelle Johnston Holthaus, highlighted the company’s renewed focus on strengthening and simplifying its product portfolio and progress on its process roadmap. They emphasized the importance of cost reduction and efficiency to enhance Intel’s competitive position and create shareholder value.

Market Reaction

Following the earnings report, Intel’s stock experienced volatility. Investors were disappointed by the softer-than-expected revenue forecast for Q1 2025, and there was no update on the search for a permanent CEO2. The company’s stock price fluctuated as analysts and investors weighed the implications of the report.

Intel’s Q4 2024 earnings report reflects a challenging period for the company, marked by declining revenue and margins. However, the company’s focus on cost reduction and efficiency, along with its strategic initiatives, provides a foundation for future growth. Investors will be closely watching Intel’s progress in the coming quarters to see if the company can navigate the current challenges and return to profitability.