Intel (INTC, Financial) reported its financial results for the fourth quarter of 2024, revealing a 7% year-over-year decline in revenue to $14.26 billion. Despite the decline, this figure exceeded the market expectation of $13.81 billion. The company recorded a net loss of $130 million, contrasting with a net profit of $2.67 billion in the same period last year. Adjusted earnings per share were $0.13, slightly above the anticipated $0.12.
Breaking down by business segments, Intel's product revenue fell 6% year-over-year to $13 billion. The Client Computing Group (CCG) saw a 9% decrease in revenue to $8.02 billion, surpassing the forecast of $7.84 billion. The Data Center and Artificial Intelligence Group (DCAI) posted a 3% decline to $3.39 billion, aligning with expectations. The Network and Edge Group (NEX) experienced a 10% revenue increase to $1.62 billion, outperforming the predicted $1.5 billion. However, Intel Foundry revenue dropped 13% to $4.5 billion.
Despite outperforming expectations, Intel's guidance indicates ongoing challenges. The company projects first-quarter 2025 revenue between $11.7 billion and $12.7 billion, with the midpoint below the market's $12.85 billion forecast. Profitability is expected to break even, while the market anticipates earnings per share of $0.08. Intel attributes this weak outlook to seasonal factors and competition, with customers managing inventory levels.
Following the announcement of Pat Gelsinger's departure, Intel named David Zinsner and Michelle Johnston Holthaus as interim co-CEOs. The search for a new CEO continues, with investors and analysts keenly watching for developments.
