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Will Top-Line Contraction Affect Intel (INTC) Q4 Earnings?
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Intel Corporation (INTC - Free Report) is scheduled to report fourth-quarter 2022 results on Jan 26 after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 73.5%. It pulled off a trailing four-quarter earnings surprise of 11.4%, on average.
The Santa Clara, CA-based semiconductor company is expected to have recorded year-over-year lower revenues due to a fall in sales in the Client Computing Group and Datacenter and AI Group.
Factors at Play
In the fourth quarter, Intel unveiled the 2023 version of the oneAPI tools that support the upcoming 4th Gen Xeon Scalable processors, Xeon CPU Max Series and Data Center GPUs. In addition to improved performance and productivity enhancements, the tools offer support for new Codeplay plug-ins that make it easier for developers to write SYCL code for non-Intel GPU architectures. This is likely to get reflected in the upcoming results.
During the to-be-reported quarter, Intel Foundry Services added features to its design ecosystem Accelerator program to enable assured chip design and production on advanced process technologies and meet the stringent design and production requirements of national security applications. This is likely to have generated incremental revenues in the quarter.
However, dwindling PC sales, supply chain adversities and an uncertain macroeconomic environment might have weighed on the company’s top-line performance. In addition, Intel is witnessing intensifying competition in the server, storage and networking markets.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $14,489 million, which indicates a decline from the year-ago quarter’s reported figure of $19,532 million. The consensus estimate for adjusted earnings per share stands at 20 cents, suggesting a sharp fall from $1.09 reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Intel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -19.14%, with the former pegged at 16 cents and the latter at 20 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Intel currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +3.00% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 1.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +10.48% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 1.
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Will Top-Line Contraction Affect Intel (INTC) Q4 Earnings?
Intel Corporation (INTC - Free Report) is scheduled to report fourth-quarter 2022 results on Jan 26 after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 73.5%. It pulled off a trailing four-quarter earnings surprise of 11.4%, on average.
The Santa Clara, CA-based semiconductor company is expected to have recorded year-over-year lower revenues due to a fall in sales in the Client Computing Group and Datacenter and AI Group.
Factors at Play
In the fourth quarter, Intel unveiled the 2023 version of the oneAPI tools that support the upcoming 4th Gen Xeon Scalable processors, Xeon CPU Max Series and Data Center GPUs. In addition to improved performance and productivity enhancements, the tools offer support for new Codeplay plug-ins that make it easier for developers to write SYCL code for non-Intel GPU architectures. This is likely to get reflected in the upcoming results.
During the to-be-reported quarter, Intel Foundry Services added features to its design ecosystem Accelerator program to enable assured chip design and production on advanced process technologies and meet the stringent design and production requirements of national security applications. This is likely to have generated incremental revenues in the quarter.
However, dwindling PC sales, supply chain adversities and an uncertain macroeconomic environment might have weighed on the company’s top-line performance. In addition, Intel is witnessing intensifying competition in the server, storage and networking markets.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $14,489 million, which indicates a decline from the year-ago quarter’s reported figure of $19,532 million. The consensus estimate for adjusted earnings per share stands at 20 cents, suggesting a sharp fall from $1.09 reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Intel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -19.14%, with the former pegged at 16 cents and the latter at 20 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intel Corporation Price and EPS Surprise
Intel Corporation price-eps-surprise | Intel Corporation Quote
Zacks Rank: Intel currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Verizon Communications Inc. (VZ - Free Report) is set to release quarterly numbers on Feb 24. It has an Earnings ESP of +0.42% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +3.00% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 1.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +10.48% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.