Intel Earnings: What To Look For From INTC

Radek Strnad /
2022/04/27 8:28 am EDT

Computer processor maker Intel (NASDAQ:INTC) will be reporting earnings tomorrow after the bell. Here's what investors should know.

Last quarter Intel reported revenues of $20.5 billion, up 2.75% year on year, beating analyst revenue expectations by 12%. It was a mixed quarter for the company, with a solid beat on the bottom line but a decline in operating margin.

Is Intel buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Intel's revenue to decline 6.85% year on year to $18.3 billion, a further deceleration on the 0.78% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.

Intel Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue (GAAP) estimates every single time over the past two years on average by 8.01%.

Looking at Intel's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Sensata delivered top-line growth of 3.52% year on year, beating analyst estimates by 1.57% and Lam Research reported revenues up 5.52% year on year, missing analyst estimates by 4.33%. Sensata traded flat on the results while Lam Research was down 3.68%. Read our full analysis of Sensata Technologies's results here and Lam Research's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and semiconductors stocks have been swept alongside with it, with share price down on average 15.4% over the last month. Intel is down 10.6% during the same time, and is heading into the earnings with analyst price target of $53.8, compared to share price of $46.25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.