Intel ( (INTC) ) has released its Q3 earnings. Here is a breakdown of the information Intel presented to its investors.
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Intel Corporation, a leading technology company known for its semiconductor manufacturing, reported its third-quarter 2024 financial results, highlighting its ongoing strategic restructuring efforts amidst significant financial losses. Intel announced a third-quarter revenue of $13.3 billion, which marked a 6% decrease compared to the same period last year. The company’s GAAP earnings per share for the quarter stood at a loss of $3.88, heavily impacted by substantial impairment and restructuring charges totaling $15.9 billion. Despite these challenges, Intel has made progress in its cost reduction plan aimed at achieving $10 billion in savings by 2025.
The earnings report revealed a mixed performance across Intel’s business units. The Client Computing Group (CCG) saw a 7% decline in revenue, while the Data Center and AI (DCAI) segment grew by 9%, and the Network and Edge (NEX) business increased by 4%. Intel’s foundry business, crucial to its future strategy, reported an 8% drop in revenue. The company is undertaking significant structural changes, including establishing Intel Foundry as an independent subsidiary, to improve efficiency and focus on its core strengths.
Intel continues to innovate within its product lines, emphasizing advancements in AI and partnerships with industry leaders. The company launched new processors in the AI PC category and announced collaborations with companies like AMD and AWS to enhance its ecosystem. Furthermore, Intel is progressing with its Intel 18A node, which is expected to restore its leadership in process technology.
Looking ahead, Intel’s management remains cautiously optimistic, forecasting a fourth-quarter revenue between $13.3 billion and $14.3 billion. The company expects non-GAAP earnings per share to reach $0.12, reflecting improved underlying trends. Intel’s strategic focus on cost reductions, technological advancements, and operational restructuring is anticipated to position the company for future growth despite the current financial hurdles.
