Intel (INTC) is scheduled to report results of its fourth fiscal quarter after the market close on January 23, with a conference call scheduled for 5:00 pm ET. What to watch for:
1. Q4 EPS, REVENUE CONSENSUS HIGHER: Along with its last report, Intel guided for Q4 earnings per share of $1.24 on revenue of roughly $19.2B. At the time, analysts were expecting the company to report Q4 EPS of $1.21 on revenue of $18.82B, but those figures have since risen to $1.25 and $19.23B, respectively. Additionally, Intel raised its fiscal 2019 adjusted EPS outlook last quarter to $4.60 and raised its revenue view to $71B, up $1.5B from the previous guidance. Analysts expect Intel to report FY19 EPS of $4.61 on revenue of $70.98B.
2. BUYBACK: Also along with its last report, Intel said its board had approved a $20B increase in its stock repurchase authorization. In the third quarter, the company generated approximately $10.7B in cash from operations, paid dividends of $1.4B and used $4.5B to repurchase 92M shares of stock, it noted at the time.
3. CHAIRMAN STEPS DOWN: Intel announced earlier this week that at its January 15 board meeting, Andy Bryant stepped down as chairman and the board elected lead independent director Dr. Omar Ishrak to succeed Bryant as independent chairman, effective immediately. The company also announced at the time that Alyssa Henry had been named to the board.
4. HABANA LABS: Last month, Intel announced that it acquired Habana Labs, an Israel-based developer of programmable deep learning accelerators for the data center, for roughly $2B. Habana chairman Avigdor Willenz has agreed to serve as a senior adviser to the business unit as well as to Intel. Habana will continue to be based in Israel where Intel also has a significant presence and long history of investment. Prior to this transaction, Intel Capital was an investor in Habana.
5. PC PROCESSORS: Earlier this week, DigiTimes reported that Intel is expected to initiate price cuts on its PC processors in the second half of this year in an effort to defend its market dominance.
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