Intel (INTC) Q1 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/04/26 3:52 am EDT
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Computer processor maker Intel (NASDAQ:INTC) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter Intel reported revenues of $14 billion, down 31.6% year on year, missing analyst expectations by 3.67%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.

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 39.4% year on year to $11.1 billion, a further deceleration on the 6.71% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.

Intel Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Intel's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 4.45% year on year, missing analyst estimates by 1.34% and Lam Research reported revenue decline of 4.7% year on year, exceeding estimates by 0.58%. SMART traded down 3.44% on the results, Lam Research was down 1.38%. Read our full analysis of SMART'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 since 2022 and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 5.71% over the last month. Intel is down 0.58% during the same time, and is heading into the earnings with analyst price target of $29.8, compared to share price of $29.12.

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.