Intel Q2 2024 Earnings Report
Key Takeaways
Intel reported a slight decrease in revenue for Q2 2024, accompanied by a GAAP loss per share. The company is implementing a cost reduction plan, including headcount reductions and spending cuts, to improve profitability and competitiveness. Key milestones were achieved on Intel 18A, but overall financial performance was disappointing.
Second-quarter revenue decreased by 1% year over year to $12.8 billion.
GAAP earnings per share attributable to Intel was $(0.38), while non-GAAP EPS was $0.02.
Intel is forecasting third-quarter revenue between $12.5 billion and $13.5 billion.
A comprehensive cost reduction plan is being implemented, targeting over $10 billion in savings by 2025, including a more than 15% headcount reduction and the dividend is suspended starting in the fourth quarter of 2024.
Intel
Intel
Intel Revenue by Segment
Forward Guidance
Intel expects revenue between $12.5 billion and $13.5 billion in Q3 2024, with a GAAP EPS of $(0.24) and a non-GAAP EPS of $(0.03).
Positive Outlook
- Gross Margin is expected to be 34.5%
- Non-GAAP Gross Margin is expected to be 38.0%
- Tax Rate is expected to be 34%
- Non-GAAP Tax Rate is expected to be 13%
- The company continues to advance its long-term innovation and path to leadership across process technology and products.
Challenges Ahead
- GAAP Earnings (Loss) Per Share Attributable to Intel—Diluted is expected to be $(0.24)
- Non-GAAP Earnings (Loss) Per Share Attributable to Intel—Diluted is expected to be $(0.03)
- Product mix will continue to be a headwind next year, contributing to modest YoY improvements to 2025's gross margin.
- Second-half trends are more challenging than we previously expected
- Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher than typical charges related to non-core businesses and the impact from unused capacity
Revenue & Expenses
Visualization of income flow from segment revenue to net income