We knew Intel’s quarterly monetary outcomes weren’t going to be nice, after the corporate introduced a restructuring plan. However while you lose $16.6 billion in 1 / 4 the place you made $13.3 billion in income, it’s powerful to see every little 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 stated it might lay off hundreds of staff whereas restructuring the corporate to chop bills by $10 billion. Many of the loss is attributable to accountants sloshing crimson ink over all the firm’s papers: $2.8 billion in restructuring expenses and $15.9 billion in depreciation expenses, together with gear connected to its Intel 7 manufacturing course of. In case you have a look at so-called “non-GAAP” numbers, the corporate misplaced $2 billion for the third quarter of 2024.
The division that fanatics care about, the Consumer Computing Group, recorded $7.3 billion in income, down 7 p.c. “Intel continues to guide the AI PC class and is on observe to ship greater than 100 million AI PCs by the top of 2025,” the corporate stated.
Intel chief government Pat Gelsinger stated in a press release that the corporate is making “stable progress” in opposition to 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 “sturdy curiosity.”
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 alerts a return to a more healthy Intel and PC market.