- Intel forecasts third-quarter revenue of $12.5 billion to $13.5 billion, missing the expected $14.38 billion.
- Projected adjusted loss per share is 3 cents, whereas the estimate was an earnings per share of 30 cents.
- Adjusted gross margin forecast is 38%, short of the 45.5% estimate.
- Second-quarter revenue is $12.83 billion, slightly down by 0.9% year-over-year, missing the $12.95 billion estimate.
- Adjusted EPS for the second quarter is 2 cents compared to 13 cents year-over-year, below the 10 cents estimate.
- Second-quarter adjusted gross margin is 38.7%, lower than the 39.8% year-over-year and the 43.6% estimate.
- R&D expenses for the quarter are $4.24 billion, up 3.9% year-over-year, under the $4.42 billion estimate.
- Adjusted operating income plummets to $24 million, a 95% decrease year-over-year, far below the $403.8 million estimate.
- Adjusted operating margin is 0.2%, a significant drop from 3.5% year-over-year and the 3.31% estimate.
- Second-quarter Intel Products revenue stands at $11.80 billion, close to the $12 billion estimate.
- Client Computing revenue reaches $7.41 billion, below the $7.53 billion estimate.
- Datacenter & AI revenue is $3.05 billion, missing the $3.07 billion estimate.
- Network & Edge revenue totals $1.34 billion, below the $1.4 billion estimate.
- Intel Foundry revenue is $4.32 billion, under the $4.47 billion estimate.
- All Other Revenue amounts to $968 million, slightly above the $963 million estimate.
- Altera revenue is $361 million, surpassing the $356.1 million estimate.
- Mobileye revenue hits $440 million, exceeding the $429.7 million estimate.
- Other revenue is $167 million, below the $177.5 million estimate.
- Intel announces a $10 billion cost reduction plan to improve efficiency and market competitiveness.
- The company plans a headcount reduction of more than 15%.
- Dividend will be suspended starting in the fourth quarter of 2024.
- For 2025, Intel targets gross capital expenditures between $20 billion and $23 billion, with net capital spending between $12 billion and $14 billion.
- Intel plans to reduce gross capital expenditures in 2024 by more than 20% from prior projections, bringing it to between $25 billion and $27 billion, with expected net capital spending between $11 billion and $13 billion.
Intel Corp on Smartkarma
Analyst coverage of Intel Corp on Smartkarma reveals mixed sentiments from various research reports. William Keating‘s analysis highlights Intel’s risky foundry strategy with uncertain success probabilities as per Intel’s 2023 10K filing. Another report by Keating discusses Apollo’s $11 billion investment in a joint venture related to Intel’s Fab 34 and questions Intel’s strategic decisions in this investment.
Furthermore, Keating’s report points to leadership instability at Intel with the departure of the foundry chief Stuart Pann and rapid replacement by Kevin O’Buckley. On a bullish note, Baptista Research‘s report emphasizes Intel’s strong Q1 financial performance, citing revenue growth and effective cost management. However, they acknowledge near-term supply constraints affecting the company’s performance in the first half of the year.
A look at Intel Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Intel Corporation, a leading computer components manufacturer, is poised for a stable long-term outlook based on the Smartkarma Smart Scores analysis. With a solid Value score of 4, Intel is perceived as offering good value relative to its current stock price. While the Growth and Momentum scores are moderate at 2, the company still maintains a respectable Resilience score of 3, indicating its ability to weather market fluctuations. Additionally, Intel’s Dividend score of 3 underscores its capability to provide steady returns to investors.
Intel Corporation, known for designing and selling a wide range of computer components, garners an average overall outlook based on the Smartkarma Smart Scores. The company’s diverse product portfolio includes microprocessors, chipsets, memory products, and more. Although the Growth and Momentum scores are modest at 2, Intel displays strength in Value with a score of 4, implying a favorable investment proposition. Moreover, its Resilience score of 3 signals a certain level of stability, coupled with a decent Dividend score of 3, reflecting Intel’s ability to reward investors over the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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