Is Intel earnings expected to be positive with mid July layoffs?
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OP, July 27th is a Sunday. The earnings call is on July 24th at 2pm PDT.
https://www.intc.com/
@br yep you nailed it i think
Major layoffs and restructuring right before earnings is typically a smoke screen to take the focus off of the financials. It also gives management a story to tell investors that they have made these changes so everything will be better. Maybe they can sell it... I think the story has been told too often but we will see.
It won’t be good
@b7 Not so sure it will be a loss. Due to consumer reluctance to pay up for AI enabled chips, the company is selling all the 7nm it can make and those fabs are largely depreciated.
Whether a loss or not, it looks like the company wants to throw everything but the kitchen sink into the restructuring charge, which should improve forward guidance and that is what actually matters.
A wild card would be the announcement of a deal to sell any of the older fabs, and any progress on selling NEX and other non core product groups (and maybe packaging, including NM). Any of these deals helps the balance sheet and ultimately lowers interest payments so is good for the income statement too.
Also, there is considerable FUD about the 18A rumors. The actual rumor is that the company would stop offering 18A to external customers, with no mention of future Prodco use. And nothing about 18A-P. So lots of likely intended gaps in the rumors, and see what the company finally has to say about future foundry offerings.
The trolling on this site is turned up to 11, so someone is certainly getting frustrated with what's coming.
@b7 most companies will be laying off employees or at least not hiring new employees due to AI. Most major tech CEOs now admit that, but I think they are understating the extent not to scare people.
In the Q1 earnings, Intel warned of a large restructuring charge for Q2 stemming from layoffs. It will be large but I think LBT wants to surprise analysts with the scale of the layoffs, which is in part why they are being so cagey about what is happening. It will likely be another net loss even before the restructuring charge but the lower costs will help Q3/Q4.
If they are having to cut employees, do you think the earnings will be great. Any company that has to cut human jobs without AI in place, means they aren't doing well. At least with Microsoft, they have invested in AI, and as AI take over certains task, they eliminate the human job and (try) to become more efficient. Anything like that happening at Intel? I don't think so. Now you know the answer to your question. Good Luck!
Yes