Intel (INTC) Q2 Earnings: What To Expect

Adam Hejl /
2022/07/27 4:46 am EDT
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Computer processor maker Intel (NASDAQ:INTC) will be reporting earnings tomorrow after the bell. Here's what to look for.

Last quarter Intel reported revenues of $18.3 billion, down 6.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with a slow revenue growth and an underwhelming revenue 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 8.67% year on year to $17.9 billion, a further deceleration on the 0.49% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 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 five downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.25%.

Looking at Intel's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. NXP Semiconductors delivered top-line growth of 27.5% year on year, beating analyst estimates by 1.43% and Texas Instruments reported revenues up 13.7% year on year, exceeding estimates by 12.1%. NXP Semiconductors traded flat on the results, and Texas Instruments was up 1.34% on the results. Read our full analysis of NXP Semiconductors's results here and Texas Instruments's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 3.56% over the last month. Intel is up 1.18% during the same time, and is heading into the earnings with analyst price target of $47.4, compared to share price of $39.25.

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