Intel Expected To Post Poor Results

Intel will be posting disappointing results ahead of its official announcement on Wednesday.

Intel Corporation is all set to announce its earnings for the second quarter. It is believed that the company might disappoint analysts and investors and shareholders once the results are out. There is no doubt in the fact that the PC market has faced a major downfall recently and it has not recovered yet due to the rising demand of laptops and other smart gadgets. Hence, the declining PC market will have a great impact on the second quarter earnings of the company.

According to sources, Intel will be releasing its second quarter earnings result on Wednesday in the after market hours. However, expectations still are that the company will post poor results and this will be because of the weak personal computer market. Intel was one of the main companies that used to manufacture and supply its chips for personal computers, therefore, the decline of PC market has to be the reason of poor results of Intel.

According to a source, “The chip maker had initially guided for flat PC unit sales, but then lowered it to mark an expected 5% year-over-year decline.” The company worked and hoped that it will soon recover for its losses. Furthermore, it was also hopeful to make it up for the downfall in the sales of personal computers and cover it up with the sales of data centers. Intel’s data center sales will be increasing by more than 15 percent when compared to last year. However RBC, a research firm, stated that the PC sales of the company will be further down by 8 percent when compared to the sales it made last year.

The semiconductor chip maker will also post a decline in GAAP Earnings per Shares. It is said that the company will experience a decline of 8.60 percent after posting a $0.50 earnings per share in the second quarter of 2015. Moreover, the overall sales of the company will also be reflecting a major 5.5 percent year on year decline as the sales will be worth at $13.07 billion.

Sources suggest, “The company has an average earnings surprise ratio of 15.51%, and has demonstrated a 4.09% increase in earnings during the last five years. Its sales have climbed up 6.12% since then and have an average surprise ratio of 1.44%.”

So far, the company has posted mix results in the second quarter as it surpasses the expectations of The Street by a mere $0.01. The company managed to post a GAAP earnings per share of $0.41.