Advertisement

Components & Peripherals News

Intel Q3 Earnings Preview: 4 Things To Watch From Layoffs To Mobileye IPO

Shane Snider

Santa Clara, Calif. chip powerhouse Intel is expected to post disappointing quarterly earnings on Thursday. But CEO Pat Gelsinger will continue to promote his ambitious comeback plan after the company successfully lobbied for the $53 billion CHIPS Act.

It’s been a tumultuous period for big tech companies – riding the highs fueled by pandemic remote work needs and this year’s lows from decreased PC demand, inflationary pressure, supply chain issues and geopolitical strife.

Intel certainly wasn’t immune to those hardships but the company forges ahead with aggressive moves to rebuild the country’s status as the world’s premier chip manufacturer. On Thursday, Oct. 27, the tech giant is expected to post its second straight disappointing earnings release, according to industry analysts.

[RELATED STORY: Intel Forges Alliance To Back National Security Effort]

Zacks Equity Research pegs expected quarterly revenue at $15.49 billion – down 19.3 percent from the same quarter last year. If Intel can produce a surprise and beat low expectations, the firm can perhaps avoid a further stock plummet. The company has lost 50.99 percent of its stock price year-to-date, making it the Dow Jones Industrial Average’s biggest loser year to date.

In July, the company deflated its full-year guidance with its second quarterly results – ending the quarter with a $454 million net loss. “The sudden and rapid decline in economic activity was the largest driver of the shortfall but Q2 also reflected our own execution issues in areas like product design, and the ramp of AXG (Accelerated Computing Systems and Graphics Group) offerings,” Intel CEO Pat Gelsinger said on a conference call with analysts.

At the time, David Zinsner, Intel’s finance chief, told CNBC in an interview: “We do think we’re on the bottom.” He said the company was expecting a fourth quarter rebound would help bring gross margin back to around 51 percent to 53 percent.

CRN takes a look at four key things to look out for in Thursday’s earnings call:

 
Share this
Learn More: CPUs-GPUs
Advertisement
Advertisement
Sponsored Post
Advertisement

NEWSLETTER

Advertisement