NASDAQ$INTC

Intel · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Intel's Q2 2024 financial performance was reported, revealing a slight revenue decrease and a cost reduction plan to enhance efficiency.

Intel reported a slight decrease in revenue for Q2 2024, accompanied by a GAAP loss per share. The company is implementing a cost reduction plan, including headcount reductions and spending cuts, to improve profitability and competitiveness. Key milestones were achieved on Intel 18A, but overall financial performance was disappointing.

  • Second-quarter revenue decreased by 1% year over year to $12.8 billion.
  • GAAP earnings per share attributable to Intel was $(0.38), while non-GAAP EPS was $0.02.
  • Intel is forecasting third-quarter revenue between $12.5 billion and $13.5 billion.
  • A comprehensive cost reduction plan is being implemented, targeting over $10 billion in savings by 2025, including a more than 15% headcount reduction and the dividend is suspended starting in the fourth quarter of 2024.

Headline financials

Total Revenue

$12.8B

Previous: $12.9B-0.9%
EPS

-$0.38

Previous: $0.13-392.3%
Gross Margin

35.4%

Previous: 35.8%-1.1%
Non-GAAP Gross Margin

38.7%

Previous: 39.8%-2.8%
Operating Margin

-15.3%

No prior period
Non-GAAP Operating Margin

0.2%

No prior period
Tax Rate

17.5%

No prior period
Non-GAAP Tax Rate

13.0%

No prior period
Capital Expenditures

-$11.7B

Previous: -$13.3B+12.4%
Free Cash Flow

-$13.3B

Previous: -$11.8B-12.2%
Net Income

-$1.61B

Previous: $1.48B-208.7%
Operating Income

-$1.96B

Previous: -$1.02B-93.3%
Gross Profit

$4.55B

Previous: $4.64B-2.0%
Total Assets

$206B

Previous: $186B+11.1%
R&D Expense

$4.24B

No prior period
Stock-Based Comp

$780M

Previous: $922M-15.4%

Revenue & EPS history

Intel · Revenue · Quarterly

$12.8B

Q2 2024-0.9%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Intel · $11.7B total across 2 segments · Q3 2023

  • Client Computing
    $7.9B-2.5%
  • Data Center and AI
    $3.8B-9.5%

Forward guidance

Intel expects revenue between $12.5 billion and $13.5 billion in Q3 2024, with a GAAP EPS of $(0.24) and a non-GAAP EPS of $(0.03).

Tailwinds

  • Gross Margin is expected to be 34.5%
  • Non-GAAP Gross Margin is expected to be 38.0%
  • Tax Rate is expected to be 34%
  • Non-GAAP Tax Rate is expected to be 13%
  • The company continues to advance its long-term innovation and path to leadership across process technology and products.

Headwinds

  • GAAP Earnings (Loss) Per Share Attributable to Intel—Diluted is expected to be $(0.24)
  • Non-GAAP Earnings (Loss) Per Share Attributable to Intel—Diluted is expected to be $(0.03)
  • Product mix will continue to be a headwind next year, contributing to modest YoY improvements to 2025's gross margin.
  • Second-half trends are more challenging than we previously expected
  • Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher than typical charges related to non-core businesses and the impact from unused capacity

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-1.4%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-0.7%

Avg return

30 days after

44%

32 / 73 earnings

Positive

+10.0%

Q4 2017

Best reaction

-30.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+41.9%+79.5%
Q4 2025-11.4%-10.2%-18.8%
Q3 2025-7.0%+8.3%-9.6%
Q2 2025+1.9%+8.5%+10.4%
Q1 2025-6.7%-6.5%-6.7%
Q4 2024-2.9%-1.8%+18.6%
Q3 2024+4.0%+4.6%+7.8%
Q2 2024-30.1%-35.5%-28.3%
Q1 2024-7.6%-11.7%-11.0%
Q4 2023-11.1%-12.6%-12.4%
Q3 2023+8.3%+11.2%+33.9%
Q2 2023+7.2%+4.2%-3.2%
Q1 2023+6.9%+2.5%-0.2%
Q4 2022-5.2%-4.8%-15.4%
Q3 2022+6.8%+4.0%+7.8%
Q2 2022-9.6%-10.4%-17.0%
Q1 2022-3.6%-0.4%-1.5%
Q4 2021-5.8%-4.3%-6.5%
Q3 2021-10.7%-12.8%-10.6%
Q2 2021-5.7%-5.4%-7.5%
Q1 2021-7.0%-9.0%-12.0%
Q4 2020-3.4%+1.8%+8.5%
Q3 2020-9.9%-14.7%-15.2%
Q2 2020-17.1%-19.3%-19.3%
Q1 2020-1.4%-2.2%+3.6%
Q4 2019+9.2%+7.3%+2.6%
Q3 2019+9.2%+8.9%+11.4%
Q2 2019-2.5%-2.3%-15.0%
Q1 2019-10.7%-13.1%-24.1%
Q4 2018-1.9%-2.9%+9.5%
Q3 2018+7.7%+12.6%+9.7%
Q2 2018-9.1%-8.3%-9.1%
Q1 2018+2.6%+3.8%+7.9%
Q4 2017+10.0%+7.2%+4.9%
Q3 2017+8.9%+11.5%+9.7%
Q2 2017+1.6%+4.6%-0.2%
Q1 2017-2.1%+0.1%-1.8%
Q4 2016+0.5%-2.6%-3.4%
Q3 2016-4.8%-5.7%-6.1%
Q2 2016-2.5%-1.3%+0.3%
Q1 2016+1.1%
Q4 2015-6.7%
Q3 2015+1.8%
Q2 2015+0.8%
Q1 2015+3.5%
Q4 2014+0.3%
Q3 2014-0.6%
Q2 2014+10.0%
Q1 2014+1.4%
Q4 2013-3.1%
Q3 2013+1.1%
Q2 2013-4.2%
Q1 2013+2.6%
Q4 2012-3.9%
Q3 2012+0.3%
Q2 2012+4.3%
Q1 2012-1.6%
Q4 2011-0.1%
Q3 2011+0.3%
Q2 2011-0.9%
Q1 2011-1.2%
Q4 2010-0.7%
Q4 2008-0.7%
Q3 2010-0.4%
Q2 2010+0.6%
Q4 2009+0.6%
Q1 2009-1.2%
Q1 2010+0.4%
Q4 2007-2.1%
Q3 2009-3.2%
Q3 2008-3.2%
Q2 2009+0.4%
Q2 2008+0.4%

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