Intel will report first-quarter earnings after the close of trading on Thursday. Executives will discuss the results with analysts at 5 p.m. Eastern time.
Here are the key numbers to follow:
- Earnings: $0.87 per share as expected by analysts, excluding certain items, according to Refinitiv.
- Revenue: $16.02 billion as expected by analysts, according to Refinitiv.
The report will be the first for CEO Bob Swan since he was named permanent CEO in January. Swan, who became Intel's finance chief in 2016, took the top job on an interim basis last year after Brian Krzanich was ousted for what the company called a "consensual relationship" with an employee.
Intel's revenue is expected to come in roughly flat with the same period a year ago, a sign that the chipmaker is struggling to find avenues for growth after missing out on the smartphone boom. Intel said last week that it's exiting the 5G smartphone market after determining there was "no clear path to profitability," further ceding the mobile phone chip business to Qualcomm.
That leaves the company increasingly reliant on the data center business, where Intel has dominant market share in providing chips for servers. An additional problem for Intel is the company hasn't been making enough central processing units (CPUs) to meet PC demand.
"Our recent customer checks indicated that Intel CPU shortages for notebooks and PCs could persist through 2Q and perhaps into 3Q," wrote Weston Twigg, an analyst at KeyBank Capital Markets, in a report this week. Twigg has a "hold" rating on the stock and wrote that "Intel will likely need a strong recovery in datacenter demand to meet its full-year guidance."
For Intel, it all amounts to a lagging stock price. The shares are up 12% in the past year, while the S&P 500 technology group has gained almost double that amount.
Analysts expect revenue for all of 2019 of $71.05 billion, representing very little growth from last year, when the company recorded sales of $70.8 billion.
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