Intel Corporation ( INTC ) shares are trading higher on Friday after the company reported better-than-expected 2024 third-quarter earnings and announced progress on its $10 billion cost reduction plan on Thursday after the bell.

What Happened: Intel ( INTC ) reported a loss of 46 cents per share, missing analyst estimates of a loss of two cents per share. The company also reported sales of $13.28 billion, down 6% year-over-year but beating analyst estimates of $13.02 billion.

The company provided a detailed breakdown of its third quarter revenue. It reported revenue of $7.3 billion from the Client Computing Group, $3.3 billion from Data Center and Artificial Intelligence (AI), $1.5 billion from Network and Edge, $4.4 billion from Intel Foundry and $1.03 billion from other revenue sources. However, Intersegment eliminations resulted in a $4.3 billion loss.

In addition, Intel ( INTC ) issued guidance for the 2024 fourth-quarter. The company expects EPS of 12 cents versus analyst estimates of eight cents and sales between $13.3 billion and $14.3 billion versus analyst estimates of $13.66 billion.

“Our Q3 results underscore the solid progress we are making against the plan we outlined last quarter to reduce costs, simplify our portfolio and improve organizational efficiency. We delivered revenue above the midpoint of our guidance, and are acting with urgency to position the business for sustainable value creation moving forward,” said Pat Gelsinger, Intel ( INTC ) CEO.

The cost reduction plan encompasses structural and operational realignment, along with reductions in headcount, operating expenses and capital expenditures. Consequently, the company recognized $2.8 billion in restructuring charges.

The company’s CFO David Zinsner said that the “restructuring charges meaningfully impacted Q3 profitability” and that “the actions we took this quarter position us for improved profitability and enhanced liquidity.”

Analyst Changes: Following the earnings report, multiple analysts issued price target changes.

Needham analyst Quinn Bolton reiterated a Hold rating on Intel ( INTC ).

Rosenblatt analyst Hans Mosesmann maintained a Sell rating on Intel ( INTC ) and raised the price target from $17 to $20.

Benchmark analyst Cody Acree reiterated a Hold rating on Intel ( INTC ).

Baird analyst Tristan Gerra maintained a Neutral rating on Intel ( INTC ) and raised the price target from $20 to $25.

See Also: Michael Saylor Says Bitcoin Remedy To Fix Unhealthy Balance Sheets As MicroStrategy Unveils Massive $42B BTC Purchase Plan

INTC Price Action: At the time of writing, Intel ( INTC ) shares are moving 8.32% higher at $23.31, per data from Benzinga Pro.

Image: Image via Shutterstock