Intel Corp. — like every other major chip maker — will have its quarterly earnings report probed for how quickly the industry is managing to ease supply issues that have plagued semiconductor customers for most of COVID-19.
Intel INTC, -1.46% is scheduled to report first-quarter earnings on Thursday after the close of markets. The report will be the first with Pat Gelsinger officially presiding as chief executive after the newly announced successor to Bob Swan spoke on the conference call last quarter about his assessment of the company’s turnaround plans.
Gelsinger has already made waves since taking over. He announced an ambitious manufacturing expansion plan last month and, more recently, told Reuters that Intel was in talks with companies that design chips for automakers to start manufacturing those chips for them to resolve widespread supply shortages.
While those plans have drawn praise from most of the investment community, they’re starting to get some pushback from analysts who are wondering if Intel can turn the aircraft carrier around in time. This past Thursday, Intel’s stock received a downgrade to “underperform” from Raymond James’s Chris Caso on concerns that the chip maker’s path to regaining its former glory may come up short.
First-quarter results aren’t expected to show an immediate turnaround for Intel as revenue looks to decline year-over-year for a third-straight quarter, and earnings are expected to drop off significantly from a year ago. That’s a big reason investors will be more interested in hearing more about Gelsinger’s long-term plans and how Intel can take advantage of the current semiconductor shortage to find a needed boost.
What to look for?
Earnings: Of the 35 analysts surveyed by FactSet, Intel on average is expected to post adjusted earnings of $1.15 a share, which would be down from $1.45 a share reported in the year-ago quarter. Intel forecast $1.10 a share. Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts, and others, calls for earnings of $1.22 a share.
Revenue: Wall Street expects revenue of $17.79 billion from Intel, according to 30 analysts polled by FactSet. That would be down from the $19.83 billion reported in the year-ago quarter. Intel predicted revenue of about $17.5 billion. Estimize expects revenue of $19.23 billion.
Analysts expect revenue from client-computing, the traditional PC group, to come in at $10.17 billion, data-center sales of $5.89 billion, nonvolatile memory solutions revenue of $487.1 million, “Internet of Things,” or IoT, the revenue of $899 million, and Mobileye revenue of $337.7 million.
Intel Long (Buy)
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