What to Expect When Intel Reports After the Close

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Intel Corp. (NASDAQ: INTC) is set to report its most recent quarterly results after the markets close on Thursday. For the first quarter, the consensus estimates are $0.87 in earnings per share (EPS) and $16.02 billion in revenue. The same period of last year reportedly had $0.87 in EPS and $16.07 billion in revenue.

In its fourth-quarter report, the company issued guidance calling for EPS of $0.87 and revenues near $16.0 billion.

During that quarter, Internet of Things Group revenue declined 7% year over year. However, excluding Wind River, the group’s revenue was up 4%, considering divestitures and despite supply tightness. Record quarterly revenue in Intel’s memory business was up 25% in the same time. Its Programmable Solutions Group also achieved record quarterly revenue, up 8%, driven by strength in the data center and communications market segments.

Overall, the PC-centric business was up 10% due to continued strong demand for Intel’s higher performance products and strength in commercial and gaming. The group expanded its product portfolio for 2019 with the recent launch of new 9th Gen Intel Core processors and unveiled “Ice Lake” the upcoming, 10nm-based PC processor, which is expected to be in OEM systems on shelves for holiday, 2019.

Overall, Intel has outperformed the broad markets, with its stock up about 25% year to date. In the past 52 weeks, the stock is actually up about 15%.

The semiconductor sector has been red hot so far this year, with analysts raising targets on big technology stocks — with the exception of Intel recently. Although, since the Nvidia deal, the sector has posted solid gains.

A few analysts weighed in on Intel ahead of the report:

  • Wells Fargo has a Market Perform rating and a $60 price target.
  • Goldman Sachs has a Sell rating with a $45 price target.
  • Sanford Bernstein has a Sell rating with a $42 price target.
  • Nomura has a Buy rating with a $65 price target.
  • Northland Securities has a Sell rating with a $38 target.

Shares of Intel were last seen down 2% at $57.62, in a 52-week range of $42.36 to $59.59. The consensus price target is $54.59.

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