Intel Corporation (NASDAQ:INTC) delivered better-than-expected fourth-quarter results, yet its cautious guidance for the first quarter of 2025 raised concerns about future growth. Despite the mixed sentiment, shares gained more than 1% in pre-market trading on Friday.
The semiconductor giant reported adjusted earnings per share of $0.13, narrowly surpassing analyst expectations of $0.12. Revenue for the quarter stood at $14.26 billion, exceeding the consensus estimate of $13.83 billion, though marking a 7% decline year-over-year. Full-year 2024 revenue came in at $53.1 billion, reflecting a 2% annual decline.
While the earnings beat provided some relief, Intel’s forecast for the first quarter of 2025 fell short of market expectations. The company anticipates revenue between $11.7 billion and $12.7 billion, trailing analysts’ projection of $12.86 billion. Additionally, earnings per share are expected to range from a loss of $0.27 to break-even, well below the anticipated $0.09.
Gross margin guidance also disappointed, with Intel forecasting an adjusted margin of 36%, falling short of the 39% analysts had predicted.
Interim co-CEO Michelle Johnston Holthaus acknowledged the company’s progress in surpassing internal expectations for revenue, margins, and earnings, emphasizing Intel’s commitment to refining its product portfolio and advancing its process roadmap. However, the company pointed to seasonal trends, macroeconomic headwinds, ongoing inventory adjustments, and heightened competition as factors weighing on its near-term outlook.
Looking ahead, Intel remains focused on cost reductions and operational efficiency to drive long-term profitability and shareholder value, even as it faces increasing challenges in the evolving semiconductor landscape.