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- 1 INTC Stock rallied 4.07% in a month and 25.79% YTD.
- 2 Intel Corp. is battling a sales drop and will announce earnings on July 27, 2023.
Intel Corp. (NASDAQ: INTC) will announce its Q2 earnings report on July 27, 2023. Experts hope for an upbeat performance from the tech giant. In the first quarter of 2023, Intel suffered its most significant loss as its revenue fell by 36%. This loss is attributed to a decline in computer sales, badly affecting the company’s microprocessor revenue.
Intel Corporation (INTC Stock) – Financial Analysis
In the first quarter of 2022, Intel’s gross margin was up by 50.4%, while in Q1 2023, it fell down to -37.5%. Additionally, four of its five divisions reported a considerable decline in revenues. Only Mobileye managed to surge its revenue by 16%. This was plausible because this vertical helps make chips for autonomous cars.
During the COVID-19 pandemic, almost everyone worked remotely from home. This scenario boosted its computer sales, but as the pandemic eased, sales dropped considerably. It was mainly because both consumers and businesses steered away from buying new computers, causing a sale drop for Intel microprocessors. Notebook microprocessors sales fell by 43%, while for desktops, this fall was 30%.
Intel Corporation (NASDAQ: INTC): Technical Analysis
At press time, INTC stock is trading at $34.02, gaining 1.95%. The previous close and open were at $33.37 and $33.72, respectively. The 52-week range is from $24.59 to $40.42, indicating that a strong push could create new highs. With a volume of 79.74 Million shares, the market cap is at $142.434 Billion.
The trailing twelve-month (TTM) earnings per share are negative $0.70, indicating weakness. Analysts placed a 1.91 rating for reduction and estimated a price target of $30.66 with a downside of 9.9%.
Intel reported its last earnings on April 27, 2023, where the reported revenue of $11.715 Billion exceeded the expected value of $11.013 Billion by 6.31%. Also, as compared to the previous quarter, the revenue fell by 36.17%.
At the same time, the reported earnings of negative $0.04 per share and standardized at -$0.664 per share surpassed the estimated value of negative $0.164 by 75.63%. While comparing to the previous quarter, earnings fell by 104.60%.
The subsequent earnings shall be released on July 27, 2023, where the revenue is expected to be around $12.122 Billion, while earnings shall be around -$0.038. The changes compared to the year-ago quarter in revenue would be a drop of 21.5%, while in the case of earnings, it shall be 113.8%.
Operating expenses fell 11.48% to $5.41 Billion while operating margin (TTM) suffered by 3.90%. Revenue (TTM) is $56.42 Billion, while the (YoY) quarterly revenue growth sees a drop of 36.20%.
The gross profit (TTM) is $26.87 Billion. The total cash in hand at the end of the most recent quarter (MRQ) is $27.53 Billion, and the total debt (MRQ) is $50.27 Billion.
Intel Corp. (INTC Stock) – Candle Exploration
The last drop, which came on June 20, 2023, can be seen as a severe drop, and price action has been trying to adjust ever since. Also, since October 2022, the price action has been consolidating widely. Even after forming some strong momentum tracks, the price could not succeed.
Slightly upward-moving EMA foreshadows a slight jump; the expectation is also supported by RSI at 54.78. However, beating R1 at $36.99 would be challenging and the price would consolidate above the buying zone for some time. Experts hope that a positive earning could boost the price but momentum would be seen after the price exceeds R1.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets & stocks comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
