INTC Earnings Prediction
The chart below shows how INTC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, INTC sees a +4.41% change in stock price 10 days leading up to the earnings, and a -1.39% change 10 days following the report. On the earnings day itself, the stock moves by +0.31%. This data can give you a slight idea of what to expect for the next quarter's release.
INTC Key Earning Data
INTC Earnings Analysis
Positive
Earnings Per Share Beat: Intel Corporation reported an EPS of $0.13, significantly beating expectations of $0.0068, indicating strong financial performance.
Strong Q1 Revenue Performance: Q1 revenue reached $12.7 billion, at the high end of guidance, driven by better-than-expected Xeon sales, showcasing strong demand in the market.
Gross Margin Improvement: Non-GAAP gross margin was 39.2%, approximately three percentage points above guidance, reflecting improved cost management and demand for Raptor Lake products.
Cost Optimization Success: Operating expenses were reduced by $400 million sequentially and $700 million year over year, demonstrating effective cost optimization efforts.
Operating Expense Reduction Goals: The company is targeting a reduction in operating expenses to $17 billion for 2025 and $16 billion for 2026, indicating a commitment to financial discipline.
Foundry Revenue Growth: Intel Foundry revenue increased by 8% sequentially to $4.7 billion, driven by demand for advanced packaging services, highlighting growth in the foundry segment.
Strategic Partnership Announcement: The announcement of a partnership with Silver Lake for Altera, valued at nearly $9 billion, is expected to enhance Intel's financial position and strategic focus.
Leadership Streamlining for Agility: The leadership team is being streamlined to improve decision-making and execution speed, which is expected to foster innovation and agility within the company.
Negative
Innovation Hindrance Factors: Organizational complexity and bureaucracies are hindering innovation and agility, leading to slow decision-making processes.
Macroeconomic Uncertainties Impacting Performance: The company is facing significant macroeconomic uncertainties, including shifting trade policies, persistent inflation, and increased regulatory risks, which could impact future performance.
Q2 Revenue Decline Forecast: Despite a positive Q1, there is a forecasted revenue decline for Q2, with expectations of a 2% to 12% decrease sequentially, indicating potential market contraction.
Operating Loss Concerns: The foundry business is experiencing a significant operating loss of $2.3 billion, which is a concern for the company's profitability.
Restructuring Charges Impact: The company is anticipating restructuring charges associated with organizational changes, which may impact future financial results.
Economic Uncertainty and Recession: The overall economic landscape is uncertain, with a growing probability of a recession, making it difficult to forecast performance for the remainder of the year.
INTC FAQs
How does INTC typically perform around its earnings report dates?
INTC's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +4.41% change leading up to the report and a -1.40% change in the 10 days following the release.
Is Intel Corp (INTC) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
INTC Earning Call Sentiment
Intel Corporation (NASDAQ:INTC) Q1 2025 Earnings Call Transcript
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