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Intel Plunges on Earnings Miss, Weak Guidance: ETFs in Focus
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Intel (INTC - Free Report) reported Q4 results after market close yesterday. The world’s largest chipmaker missed estimates for both earnings and revenues and offered a weak outlook for 2023, citing cooling demand for its chips used in personal computers.
As such, shares of INTC plunged about 10% in after-market hours. Given this, ETFs like First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , First Trust Nasdaq Semiconductor ETF (FTXL - Free Report) , Strive U.S. Semiconductor ETF (SHOC - Free Report) , Pacer Data and Digital Revolution ETF (TRFK - Free Report) , and Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) having the highest allocation to the world’s biggest semiconductor maker, will be in focus.
Q4 Earnings in Focus
Earnings of 10 cents per share came much below the Zacks Consensus Estimate of 20 cents and the year-ago earnings of $1.09. Revenues declined 32% year over year to $14 billion and came in above the estimated $14.5 billion.
Client computing, data-center and AI, and network and edge revenues declined 36%, 33% and 1%, respectively. However, accelerated computing systems and graphics, Intel Foundry Services and Mobileye revenues were up 1%, 30% and 59%, respectively (see: all the Technology ETFs here).
The chipmaker continued to suffer from dismal PC and data-center markets. Shoppers choose to hold on to the laptops and desktops they purchased at the peak of the pandemic. According to Gartner, Q4 worldwide PC shipments declined 28.5%, the biggest decline since the firm started following shipments in the mid-1990s.
As such, Intel projects another big revenue decline for the current quarter, along with deeper-than-expected losses. Revenues are expected in the range of $10.5 billion to $11.5 billion, while loss will likely be about 15 cents per share. Both revenue and earnings per share guidance are well below the current Zacks Consensus Estimate of $14.05 billion and 26 cents per share, respectively.
ETFs to Tap
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. It holds about 93 securities in its basket. Of these firms, Intel takes the second spot, making up for 7.8% of the assets. From a sector look, about 38.6% of the portfolio is dominated by semiconductors & semiconductor equipment, followed by software, and technology hardware, storage & peripherals.
First Trust NASDAQ Technology Dividend Index Fund has amassed $1.6 billion in its asset base while trading in a volume of around 125,000 shares per day. It charges 50 bps in annual fees (read: 5 Stocks Powering Nasdaq ETF to Start 2023).
First Trust Nasdaq Semiconductor ETF offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. FTXL holds 30 stocks in its basket, with Intel taking the second spot at 7.6% share.
First Trust Nasdaq Semiconductor ETF has accumulated $90.7 million in AUM. The average trading volume is light at around 10,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #2 (Buy).
Strive U.S. Semiconductor ETF seeks broad market exposure to the U.S. semiconductor sector. It follows the Solactive United States Semiconductors 30 Capped Index and holds 31 stocks in its basket, with Intel taking the third spot at 7.2% of assets.
Strive U.S. Semiconductor ETF has AUM of $16.5 million and charges 40 bps in annual fees. It trades in a volume of 11,000 shares per day on average.
Pacer Data and Digital Revolution ETF aims to offer investors exposure to the globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 83 stocks in its basket. Out of these, Nvidia is the top firm, accounting for an 11.6% share.
Pacer Data and Digital Revolution ETF debuted in the space in June and has accumulated $0.9 million in its asset base. It has an expense ratio of 0.60%. TRFK trades in a meager volume of under 100 shares per day on average.
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 28 stocks in its basket, with Intel making up for the sixth position in the basket for 5.2% of assets (read: After Winning in 2022, What Awaits Dow Jones ETFs in 2023?).
Invesco Dow Jones Industrial Average Dividend ETF has been able to manage assets worth $298.8 million, while trading in a volume of 64,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3.
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Intel Plunges on Earnings Miss, Weak Guidance: ETFs in Focus
Intel (INTC - Free Report) reported Q4 results after market close yesterday. The world’s largest chipmaker missed estimates for both earnings and revenues and offered a weak outlook for 2023, citing cooling demand for its chips used in personal computers.
As such, shares of INTC plunged about 10% in after-market hours. Given this, ETFs like First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , First Trust Nasdaq Semiconductor ETF (FTXL - Free Report) , Strive U.S. Semiconductor ETF (SHOC - Free Report) , Pacer Data and Digital Revolution ETF (TRFK - Free Report) , and Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) having the highest allocation to the world’s biggest semiconductor maker, will be in focus.
Q4 Earnings in Focus
Earnings of 10 cents per share came much below the Zacks Consensus Estimate of 20 cents and the year-ago earnings of $1.09. Revenues declined 32% year over year to $14 billion and came in above the estimated $14.5 billion.
Client computing, data-center and AI, and network and edge revenues declined 36%, 33% and 1%, respectively. However, accelerated computing systems and graphics, Intel Foundry Services and Mobileye revenues were up 1%, 30% and 59%, respectively (see: all the Technology ETFs here).
The chipmaker continued to suffer from dismal PC and data-center markets. Shoppers choose to hold on to the laptops and desktops they purchased at the peak of the pandemic. According to Gartner, Q4 worldwide PC shipments declined 28.5%, the biggest decline since the firm started following shipments in the mid-1990s.
As such, Intel projects another big revenue decline for the current quarter, along with deeper-than-expected losses. Revenues are expected in the range of $10.5 billion to $11.5 billion, while loss will likely be about 15 cents per share. Both revenue and earnings per share guidance are well below the current Zacks Consensus Estimate of $14.05 billion and 26 cents per share, respectively.
ETFs to Tap
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. It holds about 93 securities in its basket. Of these firms, Intel takes the second spot, making up for 7.8% of the assets. From a sector look, about 38.6% of the portfolio is dominated by semiconductors & semiconductor equipment, followed by software, and technology hardware, storage & peripherals.
First Trust NASDAQ Technology Dividend Index Fund has amassed $1.6 billion in its asset base while trading in a volume of around 125,000 shares per day. It charges 50 bps in annual fees (read: 5 Stocks Powering Nasdaq ETF to Start 2023).
First Trust Nasdaq Semiconductor ETF (FTXL - Free Report)
First Trust Nasdaq Semiconductor ETF offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. FTXL holds 30 stocks in its basket, with Intel taking the second spot at 7.6% share.
First Trust Nasdaq Semiconductor ETF has accumulated $90.7 million in AUM. The average trading volume is light at around 10,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #2 (Buy).
Strive U.S. Semiconductor ETF (SHOC - Free Report)
Strive U.S. Semiconductor ETF seeks broad market exposure to the U.S. semiconductor sector. It follows the Solactive United States Semiconductors 30 Capped Index and holds 31 stocks in its basket, with Intel taking the third spot at 7.2% of assets.
Strive U.S. Semiconductor ETF has AUM of $16.5 million and charges 40 bps in annual fees. It trades in a volume of 11,000 shares per day on average.
Pacer Data and Digital Revolution ETF (TRFK - Free Report)
Pacer Data and Digital Revolution ETF aims to offer investors exposure to the globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 83 stocks in its basket. Out of these, Nvidia is the top firm, accounting for an 11.6% share.
Pacer Data and Digital Revolution ETF debuted in the space in June and has accumulated $0.9 million in its asset base. It has an expense ratio of 0.60%. TRFK trades in a meager volume of under 100 shares per day on average.
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 28 stocks in its basket, with Intel making up for the sixth position in the basket for 5.2% of assets (read: After Winning in 2022, What Awaits Dow Jones ETFs in 2023?).
Invesco Dow Jones Industrial Average Dividend ETF has been able to manage assets worth $298.8 million, while trading in a volume of 64,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3.