Intel will report its fourth-quarter earnings after market close on Thursday. Executives will discuss the results with analysts at 5 p.m. Eastern time.
Here are the numbers to follow:
- Earnings: $1.22 per share as expected by analysts, excluding certain items, according to Refinitiv.
- Revenue: $19.01 billion as expected by analysts, according to Refinitiv.
While the quarterly numbers are always important, investors are also eagerly awaiting an update on Intel’s search for a new CEO. It’s been seven months since Brian Krzanich was forced out after the company determined he’d been engaged in a “consensual relationship with an Intel employee.” Bob Swan, Intel’s finance chief, has since been serving as interim CEO.
Analysts expect Intel to forecast first-quarter earnings of $1.01 per share, excluding certain items, on $17.35 billion in revenue, according to Refinitiv. For all of 2019, analysts polled by Refinitiv are looking for $4.54 in earnings per share, excluding certain items, and $73.19 billion in sales.
Intel shares have gained 6 percent since the beginning of 2019. Over the past year, the stock is up almost 10 percent, while the S&P 500 is down more than 7 percent.
Heading into Thursday’s report analyst sentiment is mixed, with some pointing to challenges like competition from AMD. Weston Twigg, an analyst at KeyBanc Capital Markets, said in a note to clients on Tuesday that he sees increasing risk of disappointing first-quarter guidance. Uncertainty surrounding demand from Apple is among the concerns.
“With the semiconductor industry facing a number of headwinds, a including a slowing Chinese economy, soft smartphone sales, softening auto demand, slowing hyperscale demand, a lingering government shutdown, and ongoing trade war certainty, Intel has remained in a strong position relative to peers, with its own supply shortages likely insulating it from headwinds,” Twigg wrote. “However, we expect headwinds to mount in 1Q as data center demand likely continues to slow and Intel’s new Apple modem business likely declines amid soft demand.”
In the fourth quarter, Intel said that in 2019 it would begin construction on expansions of manufacturing facilities in the U.S. and abroad, and that it had reached a diversity goal for U.S. employees two years ahead of schedule. It also announced a new wave of processors for desktop computers.
Please check back for updates.