Core Insights - Intel reported revenue of $14.26 billion for the quarter ended December 2024, a decrease of 7.4% year-over-year, with EPS at $0.13 compared to $0.54 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $13.78 billion by 3.49%, while the EPS surpassed the consensus estimate of $0.12 by 8.33% [1] Financial Performance Metrics - Total Intel Products Group revenue was $13.03 billion, exceeding the average estimate of $12.54 billion [4] - Network and Edge revenue was $1.62 billion, surpassing the average estimate of $1.44 billion, reflecting a year-over-year increase of 10.3% [4] - Data Center and AI revenue was $3.39 billion, slightly above the average estimate of $3.35 billion, but down 15% compared to the previous year [4] - Client Computing Group revenue was $8.02 billion, exceeding the average estimate of $7.75 billion, but down 9.4% year-over-year [4] - Intel Foundry Services revenue reached $4.50 billion, slightly above the average estimate of $4.49 billion, representing a significant year-over-year increase of 1447.1% [4] - The stock has returned -1.5% over the past month, while the Zacks S&P 500 composite increased by 1.2% [3] - Intel currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Intel reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, but down from $0.54 per share a year ago, indicating a significant decline in profitability [1] Financial Performance - Intel's revenues for the quarter ended December 2024 were $14.26 billion, surpassing the Zacks Consensus Estimate by 3.49%, but down from $15.41 billion year-over-year [2] - Over the last four quarters, Intel has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Intel shares have decreased by approximately 1.5% since the beginning of the year, while the S&P 500 has gained 2.7% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $12.84 billion, and for the current fiscal year, it is $0.91 on revenues of $55.2 billion [7] - The estimate revisions trend for Intel is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Semiconductor - General industry is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8] - Amtech Systems, another company in the same industry, is expected to report a quarterly loss of $0.05 per share, reflecting a year-over-year decline of 25% [9]

Earnings Report and Market Reaction - Intel Corporation reported Q4 earnings with a muted reaction from investors as they evaluate the company's turnaround progress under new leadership [1] - Investors are also considering buyout and spin-off rumors, as well as an upcoming node launch that could impact the company's future performance [1] Analyst Background and Disclosure - The article is written by an analyst with a double degree in finance and computer science, who has passed all three levels of the CFA exam and currently works in fintech as a data engineer [1] - The analyst has a beneficial long position in Intel Corporation shares through stock ownership, options, or other derivatives [1] - The article expresses the analyst's own opinions and is not financial or investment advice [1] Seeking Alpha's Disclosure - Seeking Alpha's analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any institute or regulatory body [2] - The views or opinions expressed in the article may not reflect those of Seeking Alpha as a whole [2]

Group 1 - Intel reported a fourth-quarter loss of $100 million, or 3 cents per share, which was narrower than analysts' expectations [1] - Revenue for the fourth quarter fell 7% year-over-year to $14.3 billion, exceeding analyst consensus [1] - The foundry division generated revenue of $4.5 billion, surpassing estimates [1] Group 2 - For the first quarter, Intel projected revenue between $11.7 billion and $12.7 billion, which is below the analyst consensus of $12.9 billion [2] - The expected loss of 27 cents per share for the first quarter is wider than the anticipated 13 cents [2] - These results mark Intel's first since the resignation of former CEO Pat Gelsinger [2] Group 3 - Intel has been the subject of takeover rumors, with Citi analysts identifying Broadcom as a potential buyer [3] - There is speculation that Broadcom might consider selling Intel's foundry business [3] - Following the earnings release, Intel's shares rose about 2% in extended trading, although the stock has lost more than half its value over the past year [3]

Company Overview - Quad 7 Capital is a team of 7 analysts with a wide range of experience, sharing investment opportunities for nearly 12 years [1] - The company is best known for its February 2020 call to sell everything and go short, and has been on average 95% long and 5% short since May 2020 [1] - The broader company has expertise in business, policy, economics, mathematics, game theory, and the sciences [1] - The company shares both long and short trades and invests personally in equities discussed within their investing group, BAD BEAT Investing [1] Investment Strategy - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special-situations, and momentum trades [1] - The company provides in-depth, high-quality research with crystal clear entry and exit targets, aiming to save investors time [1] - The company has a proven track record of success and focuses on teaching investors to become proficient traders through their playbook [1] Benefits of BAD BEAT Investing - Investors learn how to understand the pinball nature of markets [2] - Investors receive well-researched written trade ideas each week [2] - Investors have access to 4 chat rooms and receive daily complimentary key analyst upgrade/downgrade summaries [2] - Investors learn basic options trading and have access to extensive trading tools [2]

Financial Performance - Fourth-quarter revenue was $14.3 billion, down 7% year-over-year; full-year revenue was $53.1 billion, down 2% year-over-year[6]. - Fourth-quarter gross margin was 39.2%, down 6.5 percentage points from 45.7% in Q4 2023; full-year gross margin was 32.7%, down 7.3 percentage points from 40.0% in 2023[4][7]. - Fourth-quarter net loss attributable to Intel was $(0.1) billion, a decrease of 105% compared to a net income of $2.7 billion in Q4 2023; full-year net loss was $(18.8) billion[4][7]. - Net revenue for the three months ended December 28, 2024, was $14,260 million, a decrease of 7.4% from $15,406 million for the same period in 2023[24]. - Net loss attributable to Intel for the three months ended December 28, 2024, was $126 million, compared to a net income of $2,669 million in the same period of 2023[24]. - Net income for the twelve months ended December 28, 2024, was a loss of $19,233 million, compared to a profit of $1,675 million for the same period in 2023[28]. - Total net revenue for the twelve months ended December 28, 2024, was $53,101 million, a decrease of 2.1% from $54,228 million in 2023[30]. - GAAP net income attributable to Intel for the twelve months ended December 28, 2024, was a loss of $18,756 million, compared to a profit of $1,689 million for the same period in 2023[40]. - Non-GAAP net income attributable to Intel for the twelve months ended December 28, 2024, was $4,423 million, down from $2,303 million in the previous year[41]. Cash Flow and Assets - The company generated $3.2 billion in cash from operations in Q4 2024 and $8.3 billion for the full year[4][9]. - Cash flows provided by operating activities for the twelve months ended December 28, 2024, were $8,288 million, down from $11,471 million in 2023[28]. - Cash and cash equivalents rose to $8,249 million as of December 28, 2024, from $7,079 million in 2023[26]. - Cash and cash equivalents at the end of the period increased to $8,249 million from $7,079 million, reflecting a net increase of $1,170 million[28]. - Total current assets increased to $47,324 million as of December 28, 2024, from $43,269 million in 2023[26]. Liabilities and Equity - Total liabilities increased to $91,948 million as of December 28, 2024, compared to $81,607 million in 2023[26]. - Total stockholders' equity decreased to $105,032 million as of December 28, 2024, from $109,965 million in 2023[26]. - The company reported a significant increase in accounts payable, which rose to $12,556 million from $8,578 million in 2023[26]. Segment Performance - Intel's Client Computing Group (CCG) revenue was $8.0 billion in Q4 2024, down 9% year-over-year; full-year CCG revenue was $30.3 billion, up 4%[9]. - The Data Center and AI segment generated revenue of $12,817 million for the twelve months ended December 28, 2024, compared to $12,635 million in 2023, reflecting a growth of 1.4%[30]. - Intel Foundry revenue was $4.5 billion in Q4 2024, down 13% year-over-year; full-year Foundry revenue was $17.5 billion, down 7%[9]. - The Intel Foundry segment reported a revenue of $17,543 million for the twelve months ended December 28, 2024, down from $18,910 million in 2023[30]. - Operating income for the Client Computing Group for the twelve months ended December 28, 2024, was $10,920 million, up 14.8% from $9,513 million in 2023[30]. Research and Development - Research and development expenses for the twelve months ended December 28, 2024, were $16,546 million, an increase of 3.1% from $16,046 million in 2023[24]. - Non-GAAP R&D and MG&A expenses for full-year 2025 are projected to be $17.5 billion, down from GAAP R&D and MG&A of $20.0 billion[46]. Future Outlook - Intel forecasts Q1 2025 revenue between $11.7 billion and $12.7 billion, with an expected EPS of $(0.27) and non-GAAP EPS of $0.00[6][14]. - The outlook for Q1 2025 includes a GAAP gross margin percentage of approximately 33.8% and a non-GAAP gross margin percentage of 36.0%[43]. - GAAP additions to property, plant, and equipment for full-year 2025 are projected to be $20.0 billion, with non-GAAP net capital spending expected to be between $8.0 billion and $11.0 billion[46]. Strategic Initiatives - The company is on track to ship over 100 million AI PCs by the end of 2025, collaborating with over 200 ISVs to optimize software on Intel silicon[13]. - Intel signed a definitive agreement with the U.S. Department of Commerce for up to $7.86 billion in funding under the U.S. CHIPS and Science Act, receiving $1.1 billion in Q4 2024[13]. - Process tool installation is underway in Fab 52 in Arizona to support ramping Intel 18A production this year[13]. - The company is focusing on strategic transactions and investments to navigate the complexities of the semiconductor industry and geopolitical tensions[20].

Core Insights - Intel reported earnings and revenue that exceeded estimates, despite issuing disappointing quarterly guidance [1][7] - The company experienced a 7% decline in revenue year-over-year for the third consecutive quarter, with a net loss of $126 million compared to a net income of $2.67 billion in the same quarter last year [1][2] Financial Performance - In the fourth quarter, Intel's revenue was $14.26 billion, surpassing the expected $13.81 billion [7] - The Client Computing Group generated $8.02 billion in revenue, down 9% year-over-year but above the $7.84 billion consensus [5] - The Data Center and Artificial Intelligence segment reported $3.39 billion in revenue, down 3% and in line with the $3.38 billion consensus [5] - The Network and Edge unit contributed $1.62 billion in revenue, up 10% and exceeding the $1.5 billion consensus [6] Management Changes - This earnings report is the first since the departure of former CEO Pat Gelsinger, who faced challenges in maintaining market share and competing in the AI sector [2] - Intel appointed two interim co-CEOs, David Zinsner and Michelle Johnston Holthaus, to lead the company moving forward [2] Future Outlook - Intel anticipates breakeven profit for the first quarter, with projected revenue between $11.7 billion and $12.7 billion, below the LSEG consensus of $12.87 billion [4] - Management cited seasonality, economic conditions, and competition as factors affecting performance, noting that clients are currently digesting inventory [4] Government Support - Intel finalized a $7.86 billion U.S. government grant aimed at supporting manufacturing in four states [6]

Core Insights - Intel Corp is set to report its fourth-quarter earnings, with Wall Street expecting an EPS of 12 cents and revenues of $13.81 billion [1] - The stock has declined by 54.51% over the past year and is down 1.36% year-to-date, raising concerns about its long-term growth due to weak AI positioning and declining data center market share [1] - Analysts currently rate Intel stock as Neutral, with a price target of $28.54, indicating a potential upside of 12.14% based on recent ratings from UBS, Citigroup, and Barclays [5] Stock Performance - Intel stock is facing strong bearish pressure, trading at $19.98, which is below its five-, 20-, and 50-day exponential moving averages, indicating continued selling pressure [2] - The eight-day and 20-day simple moving averages confirm short-term weakness, with the 50-day simple moving average at $21.31 reinforcing a bearish outlook [3] - The 200-day simple moving average at $25.56 highlights a prolonged downtrend, suggesting a challenging recovery path for the stock [3] Technical Indicators - The Moving Average Convergence Divergence (MACD) at negative 0.12 indicates ongoing negative momentum, while a Relative Strength Index (RSI) of 44.67 suggests the stock is nearing oversold territory [4] - Investors are advised to brace for continued volatility and look for signs of stabilization before considering a bullish reversal [4]

Earnings and Revenue Projections - Intel's upcoming quarterly earnings are expected to be $0 12 per share, a decline of 77 8% compared to the year-ago period [1] - Analysts forecast revenues of $13 77 billion, representing a decrease of 10 6% year over year [1] - No revision in the consensus EPS estimate for the quarter over the past 30 days, indicating stability in analysts' projections [1] Importance of Earnings Estimate Revisions - Revisions to earnings projections are critical for predicting potential investor behaviors and short-term stock price performance [2] Key Metrics Analysis - 'Net Revenues- Total Intel Products Group- Network and Edge' is expected to be $1 44 billion, a year-over-year change of -2 4% [4] - 'Net Revenues- Total Intel Products Group- Client Computing Group' is forecasted at $7 75 billion, a year-over-year change of -12 4% [4] - 'Net Revenues- All other- Other' is estimated at $154 54 million, a year-over-year change of -13 2% [5] - 'Net Revenues- Total Intel Products Group- Data Center and AI' is projected to reach $3 35 billion, a year-over-year change of -15 9% [5] - 'Net Revenues- Intel Foundry Services' is expected to be $4 49 billion, a year-over-year change of +1443 1% [5] - 'Net Revenues- All other- Mobileye' is forecasted at $508 22 million, a year-over-year change of -20 2% [6] - 'Net Revenues- Client Computing- Notebook' is estimated at $5 13 billion, a year-over-year change of -1 1% [6] - 'Net Revenues- Client Computing- Desktop' is projected to reach $2 17 billion, a year-over-year change of -31 4% [6] - 'Net Revenues- Client Computing- Other' is expected to be $364 16 million, a year-over-year change of -26 4% [7] Stock Performance - Intel's shares have returned -1 3% over the past month, compared to the Zacks S&P 500 composite's +1 7% change [7] - Intel currently carries a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]

Company Overview - Intel faces a major crossroads following the forced retirement of its CEO, Pat Gelsinger, in early December, leaving investors uncertain about the company's future direction [1] - There is speculation among investors about the potential split of Intel's product business from its other operations, though no concrete plans have been announced [1] Leadership and Strategy - The departure of Pat Gelsinger, a charismatic leader, has created a leadership vacuum at Intel, raising questions about the company's strategic direction [1] - The CEO transition comes at a critical time for Intel, as the company navigates challenges in the semiconductor industry and seeks to maintain its competitive edge [1] Investor Sentiment - Investors are closely monitoring Intel's next steps, particularly regarding potential structural changes such as a business split, which could impact the company's valuation and market position [1] - The uncertainty surrounding Intel's leadership and strategic direction has led to increased scrutiny from the investment community [1]