Intel Beats EPS, Revenue Estimates

Earnings Performance - Intel exceeded Q4 2024 earnings expectations with non-GAAP EPS of $0.13, surpassing the $0.1 estimate [1] - Revenue reached $14.3 billion, outperforming the $13.8 billion forecast [1] - Despite the outperformance, profitability challenges persist, with a 76% YoY decline in EPS and a 7% YoY revenue drop [3] Financial Metrics - Non-GAAP gross margin declined to 42.1% from 48.8% YoY, a 6.7 percentage point decrease [3] - Non-GAAP operating margin fell to 9.6% from 16.7% YoY, a 7.1 percentage point decline [3] - The company reported a net loss of $126 million in its Foundry Services due to impairment charges [8] Business Segments - Client Computing Group revenue decreased 9% YoY to $8 billion [6] - Data Center and AI segment revenue declined 3% YoY to $3.4 billion [6] - Network and Edge division revenue grew 10% YoY to $1.6 billion, driven by increased demand for networking solutions [6] Strategic Focus - Intel is executing its IDM 2.0 strategy to expand manufacturing capabilities and collaborate with external partners [4] - The company is advancing its product offerings in AI, edge computing, and cloud services while balancing cost control and R&D investments [5] - Facility expansions, particularly in Arizona, are critical for enhancing capacity and supply chain resilience [11] Dividend and Cash Flow - Intel maintained its quarterly dividend payout at $0.125 per share, prioritizing cash flow for future investments and operational stability [9] - The company is focusing on strategic investments, including the installation of more chip-making equipment, to support future growth [9] Outlook - Intel forecasts Q1 2025 revenue between $11.7 billion and $12.7 billion, with a non-GAAP EPS of $0.00 [10] - The company is advancing its manufacturing process nodes, particularly Intel 18A, and introducing new AI-enhanced chip technologies [11]