Intel Reports Mixed Q4 Results, Revenue Outlook Disappoints

Revenue Exceeds Estimates While Guidance Falls Short

Intel (INTC) announced its Q4 CY2024 financial results, revealing revenue of $14.26 billion, surpassing analyst estimates of $13.8 billion. However, the quarterly revenue guidance of $12.2 billion significantly underperformed expectations, coming in below analysts' projections of $12.9 billion.

Earnings Beat Expectations

Non-GAAP earnings per share (EPS) reached $0.13, exceeding analysts' estimates of $0.12 by 8.7%. Adjusted operating income also exceeded expectations at $1.37 billion compared to estimates of $544.8 million.

Inventory Management Concerns

Inventory days outstanding (DIO) remained elevated at 128, suggesting potential demand weakness. While DIO decreased from the previous quarter's 137, it remains higher than Intel's five-year average.

Industry Outlook and Growth Prospects

The demand for processors and graphics chips remains driven by 5G, Internet of Things, autonomous driving, and high-performance computing. However, the semiconductor industry is cyclical, and Intel's long-term revenue history indicates a decline of 5.9% annually over the past five years.

Valuation and Investment Considerations

Intel's current market capitalization stands at $85.18 billion. The stock traded up 1.5% to $20.38 following the earnings release. Investors should carefully consider Intel's valuation, business qualities, and recent financial performance before making investment decisions.