On January 30, 2025, Intel Corp (INTC, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company reported a fourth-quarter revenue of $14.3 billion, which, although down 7% year-over-year, exceeded the analyst estimate of $13.81 billion. The earnings per share (EPS) for the quarter was $(0.03), surpassing the estimated EPS of $(0.22). For the full year, Intel's revenue was $53.1 billion, a 2% decline from the previous year, with an EPS of $(4.38), slightly below the annual estimate of $(4.34).
Company Overview
Intel Corp (INTC, Financial) is a leading digital chipmaker, renowned for its design and manufacturing of microprocessors for the global personal computer and data center markets. The company pioneered the x86 architecture for microprocessors and has been a major proponent of Moore's law, driving advances in semiconductor manufacturing. Intel maintains a dominant market share in central processing units for both PC and server markets and is expanding into new areas such as communications infrastructure, automotive, and the Internet of Things. Additionally, Intel is leveraging its manufacturing capabilities to offer outsourced foundry services.
Performance and Challenges
Intel's performance in the fourth quarter reflects a positive step forward, with revenue, gross margin, and EPS surpassing guidance. However, the company continues to face challenges, including a 7% year-over-year decline in quarterly revenue and a significant drop in gross margin from 45.7% to 39.2%. The full-year results also show a decline in revenue and a substantial net loss, highlighting ongoing difficulties in the semiconductor industry.
“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.
Financial Achievements and Industry Importance
Despite the challenges, Intel's ability to exceed revenue and EPS estimates is a significant achievement, particularly in the competitive semiconductor industry. The company's focus on cost reduction and efficiency is beginning to yield results, as evidenced by the improved financial metrics. These achievements are crucial for maintaining Intel's leadership position and competitive edge in the rapidly evolving technology landscape.
Key Financial Metrics
Intel's fourth-quarter financial results include a gross margin of 39.2%, down from 45.7% in the previous year, and a net income loss of $0.1 billion compared to a $2.7 billion profit in Q4 2023. The company generated $3.2 billion in cash from operations during the quarter. For the full year, Intel reported a net loss of $18.8 billion, a stark contrast to the $1.7 billion profit in 2023, with a gross margin decline from 40.0% to 32.7%.
| Metric | Q4 2024 | Q4 2023 | Change |
|---|---|---|---|
| Revenue ($B) | 14.3 | 15.4 | Down 7% |
| Gross Margin | 39.2% | 45.7% | Down 6.5 ppts |
| Net Income (Loss) ($B) | (0.1) | 2.7 | Down 105% |
| EPS (Diluted) | (0.03) | 0.63 | Down 105% |
Analysis and Outlook
Intel's financial results indicate a challenging environment, yet the company's strategic initiatives and cost reduction efforts are beginning to show positive effects. The semiconductor industry remains highly competitive, and Intel's focus on innovation and efficiency will be critical in navigating future challenges. The company's guidance for the first quarter of 2025 reflects anticipated seasonal weakness and macroeconomic uncertainties, with projected revenue between $11.7 billion and $12.7 billion and an EPS of $(0.27).
“We are fostering a culture of efficiency across the business while driving toward greater returns on our invested capital and improved profitability,” said David Zinsner, interim co-CEO and chief financial officer of Intel.
Intel's ongoing transformation and strategic focus on its product portfolio and process roadmap are essential for enhancing its competitive position and creating shareholder value in the long term.
Explore the complete 8-K earnings release (here) from Intel Corp for further details.
