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ETFs in Focus Post Intel's Q1 Earnings Beat, Dismal Outlook
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Intel (INTC - Free Report) posted mixed first-quarter 2024 results. The world’s largest chipmaker beat estimates on earnings but lagged the same on revenues. It provided a dismal second-quarter revenue guidance, underscoring concerns over the company’s growth prospects.
As such, INTC shares dropped as much as 9.4% in after-market hours. This has put ETFs with the highest allocation to the world’s biggest semiconductor player in focus. These include First Trust Nasdaq Semiconductor ETF (FTXL - Free Report) , iShares Semiconductor ETF (SOXX - Free Report) , ClearBridge Focus Value ESG ETF (CFCV - Free Report) , iShares Edge MSCI USA Value Factor ETF (VLUE - Free Report) and Pacer Data and Digital Revolution ETF (TRFK - Free Report) .
Q1 Earnings in Focus
Intel reported earnings per share of 18 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line improved from the year-ago loss of 4 cents per share. Revenues rose 8.6% year over year to $12.72 billion but fell short of the estimated $12.76 billion.
Client computing, and data center and AI revenues increased 31% and 5%, respectively, while network and edge revenues declined 8%. Intel Foundry revenues declined 10% (see: all the Technology ETFs here).
The chipmaker is in the midst of transforming itself from a designer and manufacturer of its own chips to a manufacturer of chips for third-party clients. So far, the company has six customers, including Microsoft (MSFT - Free Report) , which is developing its own custom chips.
For the current quarter, Intel projects revenues in the range of $12.5 billion to $13.5 billion, while earnings per share are expected to be 10 cents. The current Zacks Consensus Estimate is pegged at $13.54 billion for revenues and 24 cents for earnings per share. The weak outlook suggests that the chipmaker might take time for a significant turnaround. Once the world’s dominant chipmaker, Intel is now lagging behind rivals such as Nvidia (NVDA - Free Report) and Taiwan Semiconductor Manufacturing Co. (TSM - Free Report) in revenues and technological know-how (read: TSMC Beats on Q1 Earnings, Shares Fall: ETFs in Focus).
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 31 stocks in its basket, with Intel taking the fifth spot at 6.7% share.
First Trust Nasdaq Semiconductor ETF has $1.3 billion in AUM. The average trading volume is light at around 41,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #1 (Strong Buy).
iShares Semiconductor ETF follows the ICE Semiconductor Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 30 securities in its basket, with Intel occupying the fifth position at 5.2% of assets.
iShares Semiconductor ETF has amassed $11.9 billion in its asset base and trades in a volume of about 4 million shares a day. The product charges a fee of 35 bps a year from investors and has a Zacks ETF Rank #1 with a High risk outlook (read: Can Q1 Earnings Results Recharge Semiconductor ETFs?).
ClearBridge Focus Value ESG ETF seeks long-term capital appreciation by investing in an actively managed portfolio of large-capitalization stocks with strong business franchises at attractive valuations that meet the managers’ financial and environmental, social and governance criteria. It holds 39 stocks in its basket, with Intel taking the top spot at 5.3%.
ClearBridge Focus Value ESG ETF has accumulated $3.4 million in its asset base and charges 48 bps in annual fees. It trades in average daily volume of under 100 shares.
iShares Edge MSCI USA Value Factor ETF offers exposure to large and mid-cap U.S. stocks with lower valuations based on fundamentals and tracks the MSCI USA Enhanced Value Index. It holds 150 stocks in its basket, with Intel occupying the top position at 5.2% of the assets. Information technology takes the largest share at 27.3%, while financials, consumer discretionary and healthcare round off the next three with double-digit exposure each.
iShares Edge MSCI USA Value Factor ETF has amassed $7 billion in its asset base and charges 15 bps in annual fees. It has a Zacks ETF Rank #2 (Buy).
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 78 stocks in its basket. Out of these, Intel is the fifth firm, accounting for a 4.9% share.
Pacer Data and Digital Revolution ETF has accumulated $28.7 million in its asset base and in average daily volume of 16,000 shares. It has an expense ratio of 0.60%.
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ETFs in Focus Post Intel's Q1 Earnings Beat, Dismal Outlook
Intel (INTC - Free Report) posted mixed first-quarter 2024 results. The world’s largest chipmaker beat estimates on earnings but lagged the same on revenues. It provided a dismal second-quarter revenue guidance, underscoring concerns over the company’s growth prospects.
As such, INTC shares dropped as much as 9.4% in after-market hours. This has put ETFs with the highest allocation to the world’s biggest semiconductor player in focus. These include First Trust Nasdaq Semiconductor ETF (FTXL - Free Report) , iShares Semiconductor ETF (SOXX - Free Report) , ClearBridge Focus Value ESG ETF (CFCV - Free Report) , iShares Edge MSCI USA Value Factor ETF (VLUE - Free Report) and Pacer Data and Digital Revolution ETF (TRFK - Free Report) .
Q1 Earnings in Focus
Intel reported earnings per share of 18 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line improved from the year-ago loss of 4 cents per share. Revenues rose 8.6% year over year to $12.72 billion but fell short of the estimated $12.76 billion.
Client computing, and data center and AI revenues increased 31% and 5%, respectively, while network and edge revenues declined 8%. Intel Foundry revenues declined 10% (see: all the Technology ETFs here).
The chipmaker is in the midst of transforming itself from a designer and manufacturer of its own chips to a manufacturer of chips for third-party clients. So far, the company has six customers, including Microsoft (MSFT - Free Report) , which is developing its own custom chips.
For the current quarter, Intel projects revenues in the range of $12.5 billion to $13.5 billion, while earnings per share are expected to be 10 cents. The current Zacks Consensus Estimate is pegged at $13.54 billion for revenues and 24 cents for earnings per share. The weak outlook suggests that the chipmaker might take time for a significant turnaround. Once the world’s dominant chipmaker, Intel is now lagging behind rivals such as Nvidia (NVDA - Free Report) and Taiwan Semiconductor Manufacturing Co. (TSM - Free Report) in revenues and technological know-how (read: TSMC Beats on Q1 Earnings, Shares Fall: ETFs in Focus).
ETFs in Focus
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 31 stocks in its basket, with Intel taking the fifth spot at 6.7% share.
First Trust Nasdaq Semiconductor ETF has $1.3 billion in AUM. The average trading volume is light at around 41,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #1 (Strong Buy).
iShares Semiconductor ETF (SOXX - Free Report)
iShares Semiconductor ETF follows the ICE Semiconductor Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 30 securities in its basket, with Intel occupying the fifth position at 5.2% of assets.
iShares Semiconductor ETF has amassed $11.9 billion in its asset base and trades in a volume of about 4 million shares a day. The product charges a fee of 35 bps a year from investors and has a Zacks ETF Rank #1 with a High risk outlook (read: Can Q1 Earnings Results Recharge Semiconductor ETFs?).
ClearBridge Focus Value ESG ETF (CFCV - Free Report)
ClearBridge Focus Value ESG ETF seeks long-term capital appreciation by investing in an actively managed portfolio of large-capitalization stocks with strong business franchises at attractive valuations that meet the managers’ financial and environmental, social and governance criteria. It holds 39 stocks in its basket, with Intel taking the top spot at 5.3%.
ClearBridge Focus Value ESG ETF has accumulated $3.4 million in its asset base and charges 48 bps in annual fees. It trades in average daily volume of under 100 shares.
iShares Edge MSCI USA Value Factor ETF (VLUE - Free Report)
iShares Edge MSCI USA Value Factor ETF offers exposure to large and mid-cap U.S. stocks with lower valuations based on fundamentals and tracks the MSCI USA Enhanced Value Index. It holds 150 stocks in its basket, with Intel occupying the top position at 5.2% of the assets. Information technology takes the largest share at 27.3%, while financials, consumer discretionary and healthcare round off the next three with double-digit exposure each.
iShares Edge MSCI USA Value Factor ETF has amassed $7 billion in its asset base and charges 15 bps in annual fees. It has a Zacks ETF Rank #2 (Buy).
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 78 stocks in its basket. Out of these, Intel is the fifth firm, accounting for a 4.9% share.
Pacer Data and Digital Revolution ETF has accumulated $28.7 million in its asset base and in average daily volume of 16,000 shares. It has an expense ratio of 0.60%.