Q2 2024 Intel Corp Earnings Call Transcript
Key Points
- Intel Corp (INTC) is accelerating actions to improve profitability and capital efficiency by more than $10 billion in 2025.
- The company is targeting a headcount reduction of greater than 15% by the end of 2025, which will significantly reduce operating expenses.
- Intel Corp (INTC) has introduced a cost-reduction plan that will lower OpEx to approximately $20 billion in 2024 and $17.5 billion in 2025.
- The launch of Panther Lake in the second half of 2025 is expected to improve overall profitability with a more performant and cost-competitive process.
- Intel Corp (INTC) has achieved several important milestones, including the ramp of Intel 4 and Intel 3, and the readiness of Intel 20A for production next quarter.
- Q2 profitability was below expectations, partly due to the decision to quickly ramp Core Ultra AI CPUs.
- The company is suspending its dividend at the beginning of the fourth quarter to prioritize liquidity for strategic investments.
- Intel Corp (INTC) expects gross margins to be moderately weaker sequentially in Q3 due to the ramp of new manufacturing nodes.
- The company is facing headwinds in its more cyclical businesses, including NEX, Altera, and Mobileye, which are trending below original forecasts.
- Weaker-than-expected gross margin in Q2 was due to an accelerated ramp of AI PC products and higher-than-typical period charges related to non-core businesses.
Thank you for standing by, and welcome to Intel Corporation's second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, today's program is being recorded. And now, I'd like to introduce your host for today's program, Mr. John Pitzer, Corporate Vice President of Investor Relations.
Thank you, Jonathan. By now you should have received a copy of the Q2 earnings release and earnings presentation, both of which are available on our Investor Relations website, intc.com. For those joining us online today, the earnings presentation is also available in our webcast window. I am joined today by our CEO, Pat Gelsinger; and our CFO, David Zinsner. In a moment, we will hear brief comments from both, followed by a Q&A session.
Before we begin, please note that today's discussion does contain forward-looking statements based on the environment as we currently see it, and as such, are subject to various risks and uncertainties. It also contains references to non-GAAP financial measures that we believe provide
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
