What Can Investors Expect From Intel’s Q4 Earnings

Intel is among the first big technology stocks to report on its latest quarterly performance. Here’s what to expect from Intel’s earnings call.

Jan. 20, 2021

Intel (NASDAQ: INTC) is one of the most well-known names in the tech industry, but it’s fair to say the company has had a tough few years as new competitors entered the PC and cloud computing market. 

This earnings season, Intel investors are less interested in the company’s quarterly results and more focused on Pat Gelsinger returning as CEO and plans to become the industry’s leading chip manufacturer once more. Intel has also promised to share important information regarding potentially outsourcing manufacturing in its report tomorrow. However, Intel’s plans on restructuring top-level management might delay production decisions. 

The main bear thesis for the stock revolves around the company’s chip-level design, brand, and the confusing changes in leadership. However, shareholders remain positive that with a more tech-savvy CEO behind Intel, its chips could still remain competitive in the market. 

During the fourth quarter, Intel shares declined 4%. Over the same period, the tech-heavy Nasdaq Composite gained 15.4%. However, the stock is up 11% since last week’s announcement that Gelsinger will be handed back the reins.

When is Intel’s earnings date?

Intel reports earnings for the fourth quarter of 2020 on Thursday, January 20 after the bell at 5:00 PM Eastern Time. 

How can I listen to Intel’s earnings call?

To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to Intel’s investor relations page here.

What to expect from Intel’s earnings call

Consensus estimates for Intel’s quarter expect adjusted earnings per share (EPS) of $1.10, which is down from $1.52 reported in the same period last year. The chipmaker forecasted revenue of around $17.4 billion, down from $20.21 billion year-over-year (YoY). Wall Street’s predictions for revenue are $17.46 billion.

The results of the Q4 report are likely to be eclipsed by any information on changes to Intel’s long-term direction ahead of Gelsinger’s arrival. The CEO has a lot of hard work ahead of him as the company has recently been overtaken by rival chipmaker, Nvidia, in terms of valuation. Shareholders have celebrated Gelsinger’s return as Intel now has a leader with an engineering background, who can bring back innovation. 

Slow data center demand across enterprise and government markets due to the COVID-19 emergency is likely to have affected Intel’s performance in Q4. Intel’s business may have been impacted significantly during the quarter by Microsoft and Apple’s recent announcements that they will develop their own chips.

However, the increasing trend of working from home will hopefully boost Intel’s cloud-based business solutions. Furthermore, remote working may increase sales of Intel’s enterprise laptops and data center servers. 

Importantly, Intel has beaten earnings estimates in each of the trailing four quarters with the average surprise being 11.9%.

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