Intel’s Q4 2024 Financial Results Show Mixed Performance Amid Strategic Shifts
Intel’s financial performance for the fourth quarter and full-year 2024 reflects a period of mixed results, prompting cautious optimism among analysts. Despite a year-over-year decline in revenue and earnings, Intel’s focus on cost reduction and strategic efforts to streamline its product portfolio are seen as positive steps forward.
Key Financials
- Q4 2024:
- Revenue: $14.3 billion, down 7% from Q4 2023.
- Earnings per Share (EPS): $0.03 on a GAAP basis, beating analyst estimates by $0.01.
- Gross Margin: 39.2%, a drop of 6.5 percentage points from the previous year.
- Operating Margin: 2.9%, a decrease of 13.9 percentage points from 2023.
- Net Income: $0.1 billion.
- Full-Year 2024:
- Revenue: $53.1 billion, down 2% from 2023.
- EPS: $(4.38) on a GAAP basis, reflecting losses.
- Gross Margin: 32.7%, a decline of 7.3 percentage points from 2023.
- Operating Margin: -22.0%, a drop of 22.2 percentage points.
- Net Income: $18.8 billion.
Strategic Shifts and Efficiency Measures
Intel’s co-CEOs, Michelle Johnston Holthaus and David Zinsner, highlighted the company’s strategic moves to improve operational efficiency and profitability. Their cost reduction initiatives, which were introduced in 2023, are starting to show positive effects. Holthaus emphasized, “Our renewed focus on strengthening and simplifying our product portfolio, combined with progress on our process roadmap, is positioning us to better serve our customers.”
Zinsner echoed this sentiment, noting that the cost reduction plan is beginning to bear fruit, although the company remains mindful of macroeconomic uncertainty and competitive pressures. He added that Intel expects Q1 2025 to reflect some seasonal weakness, further inventory adjustments, and ongoing industry dynamics.
Looking Ahead: Q1 2025 Outlook
Intel’s outlook for the first quarter of 2025 suggests a cautious approach, with revenue projections between $11.7 billion and $12.7 billion, falling short of analysts’ expectations of $12.85 billion. The company expects a GAAP EPS of $0.27 and a non-GAAP EPS of $0.00.
Market Impact
Intel’s stock saw a modest increase of 1.32% to $20.01 per share, bringing its market capitalization to approximately $86.3 billion. Despite facing financial setbacks, the company’s ongoing strategic adjustments continue to shape investor sentiment as it works toward returning to growth.
Intel’s challenges amid a competitive and uncertain macroeconomic landscape underscore the importance of its ongoing transformation efforts. As the company refines its focus on operational efficiency, its ability to execute on these initiatives will be crucial in the coming quarters.
Source: Intel, StreetAccount, Analysts
Picture from Intel via FMT CC BY 4 0
