Intel Corporation (NASDAQ:INTC) released a poor outlook for the first quarter of 2025 while reporting fourth-quarter results that exceeded expert estimates.


During Friday's premarket trading, the chipmaker's stock increased by over 2%.

Intel beat the analyst forecast of $0.12 with adjusted earnings per share (EPS) of $0.13. Despite falling 7% year over year, revenue for the quarter came in at $14.26 billion, exceeding the average forecast of $13.83 billion. Intel reported $53.1 billion in revenue for the entire year 2024, a 2% YoY decrease.

Intel's first-quarter 2025 guidance was below estimates, even with the earnings beat. The business projects revenue of $11.7 billion to $12.7 billion, which is less than the $12.86 billion analyst consensus. Additionally, Intel anticipates EPS to be between -$0.27 and $0.00, as opposed to the $0.09 analysts had predicted.

It is anticipated that adjusted gross margins will be 36%, which is less than the 39% experts had anticipated.

"The fourth quarter was a positive step forward as we delivered revenue, gross margin, and EPS above our guidance," said Michelle Johnston Holthaus, interim co-CEO of Intel and CEO of Intel Products, in response to the findings. We are in a better position to meet the needs of our clients thanks to our increased emphasis on expanding and streamlining our product line and ongoing advancements on our process roadmap."

The company blamed ongoing inventory adjustments, competitive pressures, seasonal difficulties, and macroeconomic concerns for its poor Q1 projection.

In order to increase profitability and shareholder value, Intel's management stressed the importance of cutting costs and increasing efficiency.
Analysts at Barclays (LON:BARC) commented on the report, stating that Intel's Q4 beat was "spoiled by yet another reset lower in Q1."

"The reset was largely expected from the top line but the structurally impaired margins from Lunar Lake will drag on the full year and make for the bigger story," according to analysts lead by Tom O'Malley.


Barclays analysts anticipate modest margin increase until the Panther Lake ramp starts, despite Intel's gross margins bottoming in March and growth largely coming from CCG and, to a lesser extent, IFS.

"This reset is just another in a long line of resets, and with INTC largely in a transition phase between CEOs, strategies, and node cycles, we don't expect fundamentals to matter to investors near-term," they stated.

According to analysts at Wolfe Research, gross margins "should begin to improve in calendar year 2026 but manufacturing profitability will take time." Both analysts made similar observations.