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What to Look for in Intel Earnings

Christina Scolaro
Big Data Download

Investors will find out how rising inventories and shrinking PC sales have affected Intel’s bottom line when they report first quarter earnings after the bell on Tuesday.

The company is expected to report 41 cents a share on revenue of $12.59 billion.


Intel’s inventories have been a thorn in the tech bellwether’s side, peaking at $5.3 billion at the end of third quarter. Relatively speaking, inventories stood at $4.1 billion for the full year in 2011. Dale Ford at IHS iSupply said that, through a combination of write-offs and reduced factory utilization, levels were down 11 percent by the end of the fourth quarter from the third quarter.

Poor PC sales also are crimping the tech giant’s margins. Market data firm IDC reported that worldwide PC shipments fell almost 14 percent in the first quarter compared with the same period a year earlier, marking the steepest decline since 1994.

Looking forward, however, PC shipments may be looking better. Ford of IHS expects growth of 18 percent in the second half of 2013 versus the first half. This includes server, desktop, mobile and tablet PCs.

RELATED: iPad Fade? Apple Products Get Fewer Web Searches

According to Yahoo, online searches on Intel have increased year over year. Intel key stats—searches for stock movement, the company’s name and the like—increased 250 percent year over year, and searches for headlines on the company have risen by a whopping 687 percent year over year.