Intel is slated to report its first-quarter 2022 results after the market close on Thursday, April 28.
The company is expected to report EPS of $0.80, down 42.45% from the prior-year quarter. Meanwhile, the latest consensus estimate is calling for revenue of $18.31 billion, down 7.5% from the prior-year quarter.
Latest Results
Intel reported fourth-quarter net income of $4.62 billion, or $1.13 a share, compared with $5.86 billion, or $1.42 a share, in the year-ago period. After adjusting for acquisition-related expenses and other items, Intel reported earnings of $1.09 a share, compared with $1.52 a share from a year ago.
Revenue rose to $20.53 billion from $19.98 billion in the year-ago quarter.
Analysts expected adjusted earnings of 90 cents a share on revenue of $18.33 billion, based on Intel's forecast of 90 cents a share and revenue of about $18.3 billion.
Gross margins for the quarter declined to 55.4% on a GAPP basis, and to 57.7% on a non-GAAP basis. Intel had forecast margins of 53.5% for the fourth quarter.
Intel Q1 Guidance
Chipmaker Intel Corp posted record fourth-quarter revenue, but forecast first-quarter earnings short of Wall Street expectations, as the world's largest chipmaker faces challenges linked to persistent global supply chain problems.
The company forecast first-quarter earnings per share of 80 cents, compared to an expectation of 86 cents, according to IBES data from Refinitiv.
The company expects first-quarter revenue of $18.3 billion, above analysts' average estimates of $17.62 billion, according to IBES data from Refinitiv.
Intel could see headwinds from PC weakness, as Citi sees more bad data.
Intel may start to experience some headwinds as PC shipments continue to come in below investment firm Citi's estimates.
Analyst Christopher Danely, who has a neutral rating and a $55 price target on Intel (INTC), noted that March notebook shipments were up 33% month-over-month. However, that was below expectations of a 42% rise. For the first quarter, shipments fell 20% quarter-over-quarter, worse than the 18% decline the bank was expecting.
"We see this as another yellow flag and believe PC sales could cool off in the second half of 2022 due to a reversion to the mean after two straight years of double-digit growth," Danely wrote, reiterating the neutral rating on Intel.
The weakness in the PC market is likely due to the continued shortage in component supplies, some logistical issues and a slowdown in demand for Chromebooks.
There may be a bit of a rebound in the second quarter, as the firm expects notebook shipments to rise 5% quarter-over-quarter, but that would be at the low end of what it normally is, due to the Russian invasion of Ukraine, which may impact demand in Europe.
But any rebound is likely to be short-lived, because even if enterprise notebook demand is "stable," Danely pointed out that the consumer market appears to be "decelerating rapidly."
Analyst Opinions:
According to Zacks, For the first quarter of 2022, Intel is expected to post earnings of $0.80 per share, indicating a change of -42.5% from the year-ago quarter.
The consensus earnings estimate of $3.49 for the current fiscal year indicates a year-over-year change of -36.2%.
For the next fiscal year, the consensus earnings estimate of $3.71 indicates a change of +6.3% from what Intel is expected to report a year ago. Over the past month, the estimate has remained unchanged.
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