Intel (INTC) reports earnings tomorrow: what to expect

What happened

Intel will report earnings this Thursday after the market closes. Last quarter it beat revenue expectations with $16.13 billion, up 25.4% year on year, improved inventory levels and beat analysts' profit-per-share estimates. Analysts now expect revenue to grow 20.3% year on year this quarter.

Confirmed

Global impact / market context

Intel's results matter because the company is a major processor maker, so its revenue and profit per sale show whether demand for its chips is holding up. A 20.3% expected revenue rise would be much faster than the 2.8% growth recorded a year earlier.

Analyst inference

Other semiconductor companies have already reported results, giving a hint at demand trends. Penguin Solutions grew revenue 67.7% and beat estimates by 8.8%, while Western Digital grew 55.5% and beat estimates by 5.2%, showing peer sales growth has been strong.

Analyst inference

What to watch

1. Watch whether Intel's revenue grows near the 20.3% year-on-year rate analysts expect this quarter, compared with the 2.8% increase in the same quarter last year. Confirmed
2. Watch whether Intel again beats Wall Street's revenue and profit-per-share estimates, as it did last quarter, and whether inventory levels continue to improve. Proposed
3. Watch how Intel's shares react to the results, since peer reactions diverged: Penguin Solutions rose 13.1% after its beat while Western Digital fell 3.4% despite beating estimates. Analyst inference

Evidence

• stockstory.org