Intel Corp. (NASDAQ:INTC) reported its third-quarter 2024 financial results on October 31, delivering revenue above the midpoint of its guidance and making significant progress on its cost-reduction plan. Despite substantial restructuring charges and impairment costs, the company's outlook for the fourth quarter exceeded analysts' expectations, fueling optimism about its turnaround strategy.
For the third quarter, Intel posted revenue of $13.3 billion, down 6% year-over-year but exceeding the midpoint of its guidance range. However, the company reported a staggering net loss of $16.6 billion, or $3.88 per share, primarily due to $18.7 billion in restructuring charges and impairment costs, including a $9.9 billion non-cash charge related to a valuation allowance against U.S. deferred tax assets.
Excluding one-time items, Intel reported an adjusted loss of $0.46 per share, wider than the anticipated $0.02 loss but reflecting the ongoing challenges and costs associated with the company's turnaround efforts.
Looking ahead, Intel provided an optimistic outlook for the fourth quarter, projecting revenue between $13.3 billion and $14.3 billion, with the midpoint of $13.8 billion slightly above the consensus estimate of $13.66 billion. The company expects an adjusted EPS of $0.12, surpassing analysts' $0.08 forecast, and adjusted gross margins of 39.5%.
