- Intel forecasts third-quarter revenue between $12.6 billion to $13.6 billion, slightly higher than the analyst estimate of $12.64 billion.
- Expected adjusted earnings per share (EPS) is at $0, compared to an estimate of 4 cents per share.
- The forecasted adjusted gross margin is 36%, below the estimated 37.3%.
- Intel anticipates an adjusted tax rate of 12%, close to the estimate of 12.1%.
- Annual forecast indicates adjusted operating expenses hovering around $17 billion, aligning with the $16.98 billion estimate.
- Planned capital expenditure remains $18 billion, with anticipated net capital expenditure between $8 billion to $11 billion.
- In the second quarter results, Intel reported revenue of $12.86 billion, a 0.2% year-over-year increase, surpassing the $11.88 billion estimate.
- Intel Products segment garnered $11.81 billion in revenue, above the $10.95 billion estimate.
- Client Computing revenue reached $7.87 billion, higher than the expected $7.29 billion.
- Revenue for Datacenter & AI segment was $3.94 billion, exceeding the $3.73 billion estimate.
- Intel Foundry garnered $4.42 billion in revenue, slightly above the $4.39 billion forecast.
- Other Revenue stood at $1.05 billion, compared to the $937 million estimate.
- Reported an adjusted loss per share of 10 cents versus an EPS estimate of 1.1 cent; previous year was EPS of 2.0 cents.
- The adjusted gross margin decreased to 29.7% from 38.7% the previous year, below the expected 36.6%.
- Research and Development expenses declined by 13% year-over-year to $3.68 billion, close to the $3.66 billion estimate.
- Experienced an adjusted operating loss of $503 million, contrasting with an expected profit of $95.5 million.
- Recognized $1.9 billion in restructuring charges, impacting EPS by $(0.45) per share, excluded from non-GAAP results.
- Abandoned planned projects in Germany and Poland; consolidating operations in Costa Rica into larger sites in Vietnam and Malaysia.
- Intel is decelerating construction activities in Ohio and acknowledged about $800 million in non-cash impairment and accelerated depreciation charges.
- The company is implementing a headcount reduction plan by approximately 15%, targeting an end-of-year workforce of around 75,000 employees.
- Plans are on track for a return-to-office policy implementation in September.
Intel Corp on Smartkarma
Smartkarma, an independent investment research network, provides insightful analyst coverage on tech giant Intel Corp from various perspectives.
William Keating‘s bearish view highlights the significant layoffs at Intel, with a focus on technical staff reductions in Oregon, contrasting Raghav Vashisht‘s bullish analysis of Intel’s strategic shift towards margin recapture and customer-tailored models in the foundry space. In a different bearish take, Nicolas Baratte questions Intel’s foundry readiness and the impact of TSMC’s GaN exit. On the positive side, Patrick Liao emphasizes Intel’s focus on developing the 14A process to compete with TSMC, despite ceasing the promotion of 18A, pointing towards a broader leadership team refresh. Nicolas Baratte raises concerns about Intel’s shrinking headcount and declining market share but suggests that weaknesses may lead to new opportunities, particularly in AI and GPU sectors.
A look at Intel Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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 manufacturer, is poised for a promising long-term outlook as indicated by its Smartkarma Smart Scores. With a strong Value score of 4 and Momentum score of 4, Intel demonstrates solid financials and positive market sentiment. The company’s ability to provide value for investors and maintain positive momentum bodes well for its future growth potential.
Although Intel received lower scores in Growth (2) and Resilience (2), its respectable Dividend score of 3 showcases its commitment to rewarding shareholders. Despite facing challenges in growth and resilience factors, Intel’s focus on value creation and market momentum positions it favorably for long-term success in the competitive technology sector.
### Intel Corporation designs, manufactures, and sells computer components and related products. The Company’s major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, systems management software, conferencing products, and digital imaging products. ###
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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