Yahoo Finance Will Healthy Revenue Growth Aid Intel's (INTC) Q1 Earnings?
Intel Corporation INTC is scheduled to report first-quarter 2024 results on Apr 25 after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 22.7%. It pulled off a trailing four-quarter earnings surprise of 154.5%, on average.
The Santa Clara, CA-based semiconductor company is likely to have generated higher revenues year over year, driven by healthy demand trends in Data Center and AI Group. The introduction of cutting-edge AI-based products is also likely to have boosted revenues from the Client Computing Group.
Factors at Play
In the first quarter, Intel reinforced its existing partnership with Cadence by inking a multi-year agreement with the latter. Per the agreement, Intel Foundry Services (“IFS”) and Cadence will come together to design a range of customized Intellectual Property (IP), optimized design flows and techniques for Intel's advanced RibbonFET processes on Intel 18A and beyond.
The collaboration is likely to optimize performance, power, area, bandwidth and latency for demanding AI, HPC and premium mobile applications while advancing Intel’s Integrated Device Manufacturing (IDM) 2.0 strategy. With the adoption of RibbonFET gate-all-around transistors and PowerVia backside power delivery, IFS is likely to offer more choices to customers and simultaneously fuel the growth of the IP ecosystem.
During the quarter, Intel also launched Xeon next-gen processors, code-named Sierra Forest, with up to 288 Efficient-cores and Infrastructure Power Manager software for 5G core. The new processors will enable network operators to increase performance per rack, virtual CPUs and performance per watt without making any significant changes to the application software. All these are likely to get reflected in the upcoming results.
In the to-be-reported-quarter, Intel collaborated with DigitalBridge Group, Inc. to launch an independent AI-based software firm dubbed Articul8 AI, Inc. Articul8 will offer enterprise customers a full-stack, vertically-optimized and secure generative AI (GenAI) software platform to help gain deeper insights and drive continuous improvement. This turnkey GenAI software platform delivers speed, security and cost-efficiency by keeping customer data, training and inference within the enterprise security perimeter. It offers customers the choice of cloud, on-premises or hybrid deployment. These are likely to have generated incremental revenues in the first quarter.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $12,909 million, which indicates an increase from the year-ago quarter’s reported figure of $11,715 million. The consensus estimate for adjusted earnings per share stands at 13 cents, suggesting solid improvement from a loss of 4 cents incurred in the prior year.
Key Developments in Q1
During the quarter, Intel secured up to $8.5 billion in direct funding under the CHIPS and Science Act. Under the agreement, Intel has the option to access federal loans of up to $11 billion, further amplifying its capacity for innovation and expansion. Additionally, by availing the U.S. Treasury Department's Investment Tax Credit, Intel anticipates substantial returns on qualified investments exceeding $100 billion over five years, a move poised to fuel long-term growth and competitiveness.
Earnings Whispers
Our proven model does not predict an earnings beat for Intel for the first quarter. 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 0.00%, with both pegged at 13 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 has a Zacks Rank #3.
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:
Qualcomm Incorporated QCOM is set to release quarterly numbers on May 1. It has an Earnings ESP of +6.15% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Silicon Motion Technology Corporation SIMO is +5.96% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on May 2.
The Earnings ESP for Meta Platforms, Inc. META is +0.62% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Apr 24.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Intel Corporation (INTC) : Free Stock Analysis Report
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