Intel Corp (INTC) Q4 2024 Earnings Call Highlights: Surpassing Guidance Amidst Market Challenges

In This Article:

  • Q4 Revenue: $14.3 billion, up 7% sequentially.

  • Q4 Non-GAAP Gross Margin: 42.1%, 260 basis points ahead of guidance.

  • Q4 Earnings Per Share (EPS): $0.13, versus guidance of $0.12.

  • Q4 Operating Cash Flow: $3.2 billion.

  • Q4 Adjusted Free Cash Flow: Negative $1.5 billion.

  • Full Year 2024 Revenue: $53.1 billion, down 2.1% year over year.

  • Full Year 2024 Gross Margin: 36%, down 760 basis points.

  • Full Year 2024 EPS: Minus $0.13.

  • Full Year 2024 Cash from Operations: $8.3 billion.

  • Full Year 2024 Adjusted Free Cash Flow: Minus $2.2 billion.

  • Q1 2025 Revenue Guidance: $11.7 billion to $12.7 billion.

  • Q1 2025 Gross Margin Guidance: Approximately 36%.

  • Q1 2025 EPS Guidance: Breakeven on a non-GAAP basis.

  • Intel Foundry Q4 Revenue: $4.5 billion, up 3% sequentially.

  • Intel Foundry Q4 Operating Loss: $2.3 billion.

  • Mobileye Q4 Revenue: $490 million, up 1% sequentially.

  • Altera Q4 Revenue: $429 million, up 4% sequentially.

Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Intel Corp (NASDAQ:INTC) delivered revenue, gross margin, and EPS above guidance for Q4 2024.

  • The company achieved key grant-related milestones, supporting solid upside to gross margins.

  • Intel Corp (NASDAQ:INTC) remains a market leader in AI PC CPUs, with plans to ship over 100 million systems by the end of 2025.

  • The launch of Panther Lake on Intel 18A is on track for the second half of 2025, showcasing progress in performance and yield.

  • Intel Foundry has made good progress with Intel 18A, showing competitive offerings and a healthy RFQ pipeline of potential customers.

Negative Points

  • Intel Corp (NASDAQ:INTC) faces increased competition in the AI PC category, impacting market dynamics.

  • The company is not yet participating meaningfully in the cloud-based AI data center market.

  • Intel Foundry reported a significant operating loss of over $13 billion in 2024, with negative gross margins.

  • Q1 2025 guidance indicates a sequential revenue decline of 11% to 18%, reflecting macro uncertainty and seasonality.

  • Intel Products' gross margins are expected to be under pressure throughout 2025 due to product mix and cost structure.

Q & A Highlights

Q: Can you talk about how much you think Granite Rapids is closing the gap in the DCAI side of things and any updates on Clearwater Forest? A: Michelle Johnston Holthaus, Interim Co-CEO, explained that Granite Rapids is a good first step in closing the gap with competitors, and customers are excited about it. Clearwater Forest is seen as a niche market product, expected to come to market in the first half of 2026. The focus is on consistent execution over the next 1 to 2 years to improve competitiveness.