- Intel’s second-quarter revenue forecast is between $11.2 billion and $12.4 billion, below the estimated $12.88 billion.
- Expected adjusted earnings per share (EPS) is $0.00, significantly lower than the estimated 7.2 cents.
- Forecasted adjusted gross margin is 36.5%, slightly under the 37% estimate.
- First-quarter revenue reported at $12.67 billion, a slight year-over-year decrease of 0.4%, but above the $12.31 billion estimate.
- First-quarter adjusted EPS was 13 cents, below the 18 cents year-over-year and the 0.74 cents estimate.
- Adjusted gross margin for the first quarter was 39.2%, surpassing the 36.1% estimate but lower than the 45.1% from the previous year.
- Research and Development expenses were reduced by 17% year-over-year to $3.64 billion, under the estimated $3.78 billion.
- Adjusted operating income was $690 million, down 4.6% year-over-year with an operating margin of 5.4% compared to 5.7% last year.
- Intel Products revenue declined by 2.9% year-over-year to $11.76 billion, exceeding the $11.2 billion estimate.
- Client Computing revenue saw a 7.8% year-over-year drop to $7.63 billion but was above the forecasted $6.93 billion.
- Data center and AI revenue rose by 7.8% year-over-year to $4.13 billion, significantly beating the $2.96 billion estimate.
- Intel Foundry revenue increased by 7.1% year-over-year to $4.67 billion, surpassing the estimated $4.3 billion.
- Revenue from all other sources grew by 47% year-over-year to $943 million, though it fell short of the $980.9 million estimate.
- Intel’s CEO, Lip-Bu Tan, stated that while the first quarter showed progress, there’s a continued effort to regain market share and ensure sustainable growth.
- The company is implementing changes such as streamlining its organization and eliminating management layers to speed up decision-making.
- Intel has revised its adjusted operating expense target to approximately $17 billion for 2025, down from a previous target of $17.5 billion, and aims for $16 billion by 2026.
- The company anticipates restructuring charges due to these changes, which are not included in current guidance.
- Intel plans to decrease its gross capital expenditure target to $18 billion for 2025, down from the previous $20 billion goal, due to improved operational efficiencies and asset utilization.
- Net capital expenditures are expected to remain between $8 billion and $11 billion for 2025.
Intel Corp on Smartkarma
Analysts on Smartkarma are closely monitoring Intel Corp, providing valuable insights into the company’s strategic moves and market sentiment. Patrick Liao‘s report, “Intel (INTC.US): Exploring a Tough Journey. (IV),” highlights the restructuring initiated by new CEO Lip-Pu Tan, including the sale of a significant stake in Altera to Silver Lake. This action raises questions about Intel Corp‘s IFS clients, prompting a deeper analysis into the company’s future prospects.
On the bullish side, Baptista Research delves into Intel’s high-stakes reboot under CEO Lip-Bu Tan, emphasizing structural reforms and a potential joint venture with TSMC. In contrast, bearish sentiments from analysts like William Keating and Nicolas Baratte point to challenges ahead, with a focus on product performance, market needs, and the need for consistent execution. The varying perspectives from Smartkarma analysts offer investors a comprehensive view of Intel Corp‘s trajectory in the competitive technology sector.
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 renowned company in the computer components industry, seems to have a bright future ahead based on its Smartkarma Smart Scores analysis. With a top score of 5 in the Value category, Intel is perceived as a strong investment opportunity in terms of its current stock price compared to its intrinsic value. Additionally, the company received a respectable score of 4 for Momentum, indicating positive market sentiment and potential upward stock price movement in the near future.
While Intel scored lower in Growth and Resilience categories with scores of 2, the company’s consistent dividend payouts, indicated by a score of 3, provide investors with a steady income stream. Overall, Intel’s diversified product portfolio, including microprocessors, chipsets, and network products, positions it well for long-term success in the ever-evolving tech industry, making it an attractive option for investors seeking value and growth potential.
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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