Intel (INTC) – Earnings Snapshot – January 27, 2024
Results:
- Beat revenue estimate by 1.5% & beat guide by 2.0%.
- GAAP & non-GAAP gross margins beat guidance & beat estimates.
- Beat $.45 EPS estimate by $.09 & beat EPS guide by $.10.
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Q1 Guidance:
- Missed Q1 revenue estimate by about 10%.
- Missed $.32 EPS estimate by $.19.
- Missed 45% GPM estimate by 50 bps.
Balance Sheet:
- $24B in cash & equivalents.
- Inventory fell about 8% Y/Y.
- $47B in debt.
- Share count rose 3% Y/Y.
A quick note on Intel: I don’t really think results matter very much right now. This is a story about how large a piece of Taiwan Semi’s foundry business Intel can take. It has morphed into the type of company that I would place in Boeing’s category. I’m not saying its team is irresponsible or its headline and execution risks are massive. I am saying that this is becoming a mission critical company in the eyes of the U.S. government. Between incentives and credits to motivate factory building, Intel is approaching vital status in terms of national security. Do we want to have all the GPUs that we need to lead in GenAI in the decades to come? Yes we do. Do we want to be overly reliant on Taiwan and all of its geopolitical risk? No we don’t. Enter Intel.
