The firm also widely missed EPS estimates, but this can be mostly attributed to one-time restructuring costs
Intel stock (NASDAQ:INTC) enjoyed a 7% stock price boost on Friday following the release of impressive revenue and guidance figures.
On Thursday, the chipmaker giant posted third-quarter 2024 revenue of $13.3 billion and fourth-quarter revenue guidance of $13.3 billion to $14.3 billion, exceeding analysts’ estimates in both cases.
Intel also widely missed analysts’ consensus adjusted EPS estimate for the third quarter of 2024, with an adjusted (non-GAAP) earnings loss of $0.46 per share, versus Wall Street’s consensus estimate of a loss of $0.02 per share.
Specifically, Intel noted impairment charges in 2024’s third quarter amounting to $0.63 per share on a non-GAAP basis. This put Intel’s EPS into negative territory, and some or all of these impairment charges may be one-time deductions.
However, this miss might not be significant since Intel’s EPS result reflected billions of dollars worth of restructuring charges.
Regardless, holders of the tech and AI stock likely breathed a sigh of relief as the company managed to beat the Street’s sales forecast in Q3 and anticipates another strong quarterly revenue result in three months’ time.
Intel Chief Financial Officer (CFO) David Zinsner said the restructuring charges “meaningfully impacted Q3 profitability as we took important steps toward our cost reduction goal”.
After factoring in “structural and operating realignment“, among other costs, Intel sustained $2.8 billion worth of restructuring charges in 2024’s third quarter.
“Solid” near-term future
Barron’s called Intel’s current-quarter guidance “solid” as the chipmaker called for revenue of $13.3 billion to $14.3 billion, the midpoint of which is $13.8 billion. This midpoint is slightly above the analysts’ consensus prediction of $13.66 billion in Q4-2024 revenue.
Moreover, Intel expects current-quarter adjusted earnings of $0.12 per share, which is 50% higher than analysts’ predicted $0.08 per share.
“We are encouraged by improved underlying trends, reflected in our Q4 guidance,” Zinsner added.
