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Will Lower Aggregate Revenues Hurt Intel's (INTC) Q4 Earnings?

Intel Corporation INTC is scheduled to report fourth-quarter 2021 results on Jan 26, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 54.1%. The bottom line surpassed the Zacks Consensus Estimate by 60 cents.

The Santa Clara, CA-based company is expected to have recorded year-over-year lower aggregate revenues due to headwinds in the enterprise business of the data center segment.

Factors at Play

During the quarter, VMware partnered with Intel to deliver security, maintenance and intelligent analytics for commercial PCs. Nokia launched an industrial edge solution that utilizes Intel’s innovations to help enterprises achieve digital transformation goals.

Amazon Web Services announced the availability of its latest cloud service powered by the Intel Xeon Scalable processors. Microsoft unveiled its newest Azure Confidential Computing Virtual Machines, DCsv3, powered by the 3rd Gen Intel Xeon Scalable processors and Intel Software Guard Extensions.

Snowflake and Intel collaborated to provide performance across multiple public clouds to joint customers. Intel collaborated with Inspur, Ruijie Networks and Silicom to develop new FPGA-based infrastructure processing unit solutions that deliver highly customized solutions to cloud and networking customers. These developments are likely to have aided Intel’s performance.

For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $18,305 million, which indicates a decline of 8.4% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 90 cents, which suggests a decrease of 40.8%.

What Our Model Says

Our proven model doesn’t predict an earnings beat for Intel this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Intel’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 90 cents.

Intel Corporation Price and EPS Surprise

Intel Corporation Price and EPS Surprise
Intel Corporation Price and EPS Surprise

Intel Corporation price-eps-surprise | Intel Corporation Quote

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Zacks Rank: Intel currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Tesla, Inc. TSLA is slated to release fourth-quarter 2021 results on Jan 26. Tesla has an Earnings ESP of +4.69% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vertex Pharmaceuticals Incorporated VRTX is scheduled to release fourth-quarter 2021 results on Jan 26. Vertex Pharmaceuticals has an Earnings ESP of +4.98% and a Zacks Rank #2.

Meritage Homes Corporation MTH has an Earnings ESP of +0.72% and a Zacks Rank #2. Meritage Homes is set to report fourth-quarter 2021 results on Jan 26.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Intel Corporation (INTC) : Free Stock Analysis Report

Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

Meritage Homes Corporation (MTH) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

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