Computer processor maker Intel (NASDAQ:INTC) will be reporting earnings tomorrow after the bell. Here’s what investors should know.
Intel missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $12.83 billion, flat year on year. It was a disappointing quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Is Intel a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Intel’s revenue to decline 7.9% year on year to $13.04 billion, in line with the 7.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Intel has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Intel’s peers in the processors and graphics chips segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AMD delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 1.6%, and Qorvo reported a revenue decline of 5.2%, topping estimates by 1.8%.
Read our full analysis of AMD’s results here and Qorvo’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 2.7% on average over the last month. Intel’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $24.76 (compared to the current share price of $22.80).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
