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Jun 29, 2024
Intel Q2 2024 Earnings Report
Intel's Q2 2024 financial performance was reported, revealing a slight revenue decrease and a cost reduction plan to enhance efficiency.
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
Revenue by Segment
Client Computing Group Revenue
CapyFin.comData Center and AI Revenue
CapyFin.comIntel Foundry Revenue
CapyFin.comAll Other Revenue
CapyFin.com 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