We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Higher Data Center Revenues Aid Intel (INTC) Q1 Earnings?
Read MoreHide Full Article
Intel Corporation (INTC - Free Report) is scheduled to report first-quarter 2022 results after the closing bell on Apr 28. In the first quarter, the company is likely to have recorded higher revenues from the Data Center Group (DCG) segment due to improving market conditions and new product launches.
Factors at Play
The DCG segment includes servers, workstations and other products for cloud, enterprise and communication infrastructure market.
In the to-be-reported quarter, Intel witnessed significant traction from the launch of the 3rd Gen Intel Xeon Scalable processors (Ice Lake), the only x86 data center processors with built-in AI acceleration. The proliferation of cloud architecture, which forms the core of the data infrastructure, is leading to the democratization of high-performance computing. The company is witnessing healthy demand in areas like precision medicine and numerical weather prediction, while rapid adoption of 5G is enabling increased bandwidth, fueling the continued transformation of the network to an intelligent edge. All these initiatives are likely to have translated into higher revenues for the segment. Moreover, with a gradual recovery in post-pandemic market conditions, the segment is likely to have recorded higher platform volume driven by the recovery in the enterprise and government sectors. Adjacent revenues are also likely to have witnessed healthy growth due to the inclusion of the Intel Optane memory business and improvement in Ethernet demand. Such initiatives are likely to get reflected in the upcoming results.
Overall Expectations
The Zacks Consensus Estimate for revenues from the DCG segment is pegged at $6,851 million, indicating an improvement from $5,564 million reported in the year-ago quarter.
The Zacks Consensus Estimate for total revenues of the company stands at $18,320 million, indicating a decline from $19,673 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 80 cents per share. It had reported $1.39 in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Intel for the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +75.17% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Apr 27.
The Earnings ESP for Telephone and Data Systems, Inc. (TDS - Free Report) is +34.62% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 5.
Image: Bigstock
Can Higher Data Center Revenues Aid Intel (INTC) Q1 Earnings?
Intel Corporation (INTC - Free Report) is scheduled to report first-quarter 2022 results after the closing bell on Apr 28. In the first quarter, the company is likely to have recorded higher revenues from the Data Center Group (DCG) segment due to improving market conditions and new product launches.
Factors at Play
The DCG segment includes servers, workstations and other products for cloud, enterprise and communication infrastructure market.
In the to-be-reported quarter, Intel witnessed significant traction from the launch of the 3rd Gen Intel Xeon Scalable processors (Ice Lake), the only x86 data center processors with built-in AI acceleration. The proliferation of cloud architecture, which forms the core of the data infrastructure, is leading to the democratization of high-performance computing. The company is witnessing healthy demand in areas like precision medicine and numerical weather prediction, while rapid adoption of 5G is enabling increased bandwidth, fueling the continued transformation of the network to an intelligent edge. All these initiatives are likely to have translated into higher revenues for the segment.
Moreover, with a gradual recovery in post-pandemic market conditions, the segment is likely to have recorded higher platform volume driven by the recovery in the enterprise and government sectors. Adjacent revenues are also likely to have witnessed healthy growth due to the inclusion of the Intel Optane memory business and improvement in Ethernet demand. Such initiatives are likely to get reflected in the upcoming results.
Overall Expectations
The Zacks Consensus Estimate for revenues from the DCG segment is pegged at $6,851 million, indicating an improvement from $5,564 million reported in the year-ago quarter.
The Zacks Consensus Estimate for total revenues of the company stands at $18,320 million, indicating a decline from $19,673 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 80 cents per share. It had reported $1.39 in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Intel for the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intel Corporation Price and EPS Surprise
Intel Corporation price-eps-surprise | Intel Corporation Quote
Zacks Rank: Intel has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Amazon.com, Inc. (AMZN - Free Report) is set to release quarterly numbers on Apr 28. It has an Earnings ESP of +8.30% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +75.17% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Apr 27.
The Earnings ESP for Telephone and Data Systems, Inc. (TDS - Free Report) is +34.62% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 5.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.