Intel (INTC.US) is set to give its latest quarterly earnings report today after the closing bell. The company's stock has been under pressure since April 2021 due to increasing competition from AMD, manufacturing delays and the end of cooperation with Apple, which decided to produce its own line of M1 chips for Macbooks. Also lack of progress in key business segments, particularly the Data Center Group and Client Computing Group which accounts for a respective 30% and 50% of the company’s quarterly revenue additionally weighed on the company's recent performance. Persistent supply constraints of many vital components such as chips are expected to have had a negative impact on the PC market in the last quarter despite rising consumer demand.
For the quarter that ended September, Intel is expected to earn $1.11 per share on revenue of $18.24 billion. This compares to the year-ago quarter when earnings were $1.11 per share on revenue of $18.33 billion. For the fiscal year earnings are expected to decline 6% year over year to $4.79 per share, while full-year revenue of $73.6 billion would decline about 5.5% year over year.
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Here's a look at Intel's past performance and the resulting price change. Source: Benzinga
Investors will be keen to hear how demand for Intel’s products are faring amid the supply chain problems and whether the company is regaining market share from AMD. Also additional details regarding Intel’s' new IDM 2.0 strategy and its expected impact margins will be closely followed. Recently the company posted disappointing margins figures and the fact CEO Pat Gelsinger asked Washington for subsidies to help build-out chip manufacturing to wean the country off its reliance on Asian countries like Taiwan and South Korea points out the new strategy could negatively affect company's future results without government support. However more details regarding this topic may be revealed only at the company’s Nov. 18 analyst day.
Intel (INTC.US) stock tested an earlier broken upper limit of the wedge formation which coincides with the upper boundary of the 1:1 structure and moves higher. If current sentiment prevails after the earnings release, then upward move may accelerate towards resistance at $57.40 which is marked by previous price reactions. However it is important to note that Intel shares have experienced significant falls on the day of results over the past two quarters. If a similar situation occurs today, then nearest major support to watch lies at $51.85. Source: xStation5
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