We knew Intel’s quarterly monetary outcomes weren’t going to be nice, after the corporate introduced a restructuring plan. However if you lose $16.6 billion in 1 / 4 the place you made $13.3 billion in income, it’s robust to see every thing via rose-tinged glasses.
The excellent news? Intel seems to have happy buyers, as its monetary outlook is anticipated to outperform what Wall Road had hoped for.
In August, Intel mentioned it will lay off hundreds of staff whereas restructuring the corporate to chop bills by $10 billion. A lot of the loss is attributable to accountants sloshing crimson ink over all the firm’s papers: $2.8 billion in restructuring fees and $15.9 billion in depreciation fees, together with gear connected to its Intel 7 manufacturing course of. For those who take a look at so-called “non-GAAP” numbers, the corporate misplaced $2 billion for the third quarter of 2024.
The division that lovers care about, the Shopper Computing Group, recorded $7.3 billion in income, down 7 p.c. “Intel continues to lead the AI PC category and is on track to ship more than 100 million AI PCs by the end of 2025,” the corporate mentioned.
Intel chief government Pat Gelsinger mentioned in a press release that the corporate is making “solid progress” towards its plan and that its 18A manufacturing course of, a part of the corporate’s efforts to woo clients to its foundry enterprise, is attracting “strong interest.”
Intel’s inventory soared after hours, nevertheless, as a result of the corporate expects fourth quarter income to be up, between $13.3 billion and $14.3 billion. That’s greater than it made within the third quarter, greater than Wall Road anticipated, and apparently indicators a return to a more healthy Intel and PC market.
