- Intel’s second-quarter revenue forecast is set between $11.2 billion and $12.4 billion, missing the estimate of $12.88 billion.
- Expected adjusted EPS for the second quarter is $0, which is below the estimate of 7.2 cents.
- First-quarter revenue was reported at $12.67 billion, a 0.4% decline year-over-year, yet ahead of the $12.31 billion estimate.
- Adjusted EPS for the first quarter was 13 cents, down from 18 cents the previous year, but exceeding the estimate of 0.74 cents.
- Adjusted gross margin for the first quarter was 39.2%, exceeding the estimate of 36.1% but down from 45.1% year-over-year.
- Intel saw a 17% year-over-year reduction in R&D expenses, spending $3.64 billion, under the estimate of $3.78 billion.
- Adjusted operating income decreased by 4.6% year-over-year, with an operating margin of 5.4% compared to 5.7% last year.
- Client Computing revenue fell by 7.8% year-over-year to $7.63 billion, while Datacenter & AI revenue grew 7.8% to $4.13 billion.
- Intel Foundry revenue increased by 7.1% year-over-year to $4.67 billion, beating the estimate of $4.3 billion.
- All Other Revenue surged 47% year-over-year, totaling $943 million, although slightly below the estimate of $980.9 million.
- Intel plans to require employees to work on-site four days a week by September 1.
- CEO Lip-Bu Tan emphasized the strategic direction towards market share gain and sustainable growth, highlighting the need for organizational streamlining.
- Intel has targeted reducing adjusted operating expenses to $17 billion in 2025, and further cutting to $16 billion by 2026.
- The company is also reducing its gross capex target for 2025 to $18 billion from a previous target of $20 billion.
- Shares fell 5.8% in post-market trading, down to $20.24 with a volume of 2.36 million shares traded.
Intel Corp on Smartkarma
Analyst coverage of Intel Corp on Smartkarma showcases a range of perspectives. Patrick Liao‘s bullish view in the report “Intel (INTC.US): Exploring a Tough Journey. (IV)” highlights the restructuring led by CEO Mr. Lip-Pu Tan and the sale of 51% of Altera to Silver Lake. Questions arise about Intel Corp‘s IFS clients.
On the other hand, analysts like Nicolas Baratte and William Keating express bearish sentiments. Baratte’s report, “Intel Vision Conf: New CEO Mr. Tan Does Not Hide that It Will Be Tough to Fix Intel,” delves into challenges around product performance and market alignment. Meanwhile, Keating addresses intriguing details in “Intel’s Annual Shareholder Meeting Proxy Statement Has A Few Interesting Gems,” raising questions about Intel’s path forward amidst leadership changes.
A look at Intel Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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 designer and manufacturer, is looking promising for the long term based on the Smartkarma Smart Scores. With a perfect Value score of 5, Intel is considered highly undervalued relative to its intrinsic worth. This indicates potential for significant future growth in stock price. Additionally, the company receives a decent Dividend score of 3, suggesting a stable dividend payout to investors.
While Intel’s Growth and Resilience scores are relatively lower at 2 each, indicating some room for improvement in these areas, its Momentum score of 4 highlights strong positive price trends. This indicates a potential rise in the stock’s value in the near future. With a diverse product portfolio that includes microprocessors, chipsets, and network products, Intel Corporation seems well-positioned for sustained growth and value creation over time.
Summary: Intel Corporation is a well-established company specializing in designing, manufacturing, and selling a wide range of computer components and related products. Its offerings include microprocessors, chipsets, flash memory products, and digital imaging products, among others. With impressive Smartkarma Smart Scores and a diverse product lineup, Intel shows promise for long-term success in the ever-evolving tech industry.
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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