Intel Corporation (NASDAQ: INTC) has confirmed that it will release its Q3 2021 earnings on Thursday, October 21, 2021, after market close.
What to look for
Despite the supply chain disruptions related to chip supply, the company has been making strides in the sector as digitalization continues resulting in huge opportunities for the company and its customers in various sectors. In addition, Intel has a renewed focus on execution and innovation, which positions the company to leverage opportunities and deliver significant growth. When the company reported Q2 2021 results, CEO Pat Gelsinger said they are building momentum and improving execution, and the number of customers picking their solutions is increasing. All these positive developments are likely to reflect in the company's Q3 2021 earnings.
Earnings: Stockearning’s Estimated EPS is likely to be better from the past quarter's EPS of $1.28 per share. Historical EPS performance shows that the company has topped EPS estimates in all the last 12 quarters (100%). A year ago, the company had EPS of $1.11, slightly topping estimates of $1.10.
Revenue: In Q2 2021, the company had revenue of $19.6 billion flat YoY with non-GAAP revenue increasing 2% to $18.5 billion, topping April guidance by around $700 million. The company raised the full-year 2021 outlook and now expects revenue of $77.6 billion. The company predicts GAAP revenue of $19.1 billion for the third quarter and non-GAAP revenue of $18.2 billion.
Stock movement: Since the last earnings release, Intel's share price has lost 6.6%. The share price has been UP 24 times in the past 47 quarters following the earnings release. So, the historical price reaction suggests a 51% probability of the stock going UP after earnings release. According to the Stockearning algorithm, the predicted stock move on the first day is 4%, while the predicted move on the seventh day is 5%.
What analysts are saying
Morgan Stanley’s Joseph Moore lowered Intel stock’s price target from $70 to $65 but maintained a “buy” rating on the shares. Following the downgrade of the sector view to cautious by the company’s IT hardware team, headed by Katy Huberty, Moore sees more headwinds, especially in PCs, and as a result, cut forecasts for the form's PC revenues. Nevertheless, the analysts are convinced that there is still some long-term turnaround coming, which led to him maintaining his rating on Intel shares.
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