Intel (INTC) is scheduled to report results of its second fiscal quarter after the market close on July 22, with a conference call scheduled for 5:00 pm ET. What to watch for:
1. GUIDANCE: Along with its last report, Intel guided for Q2 earnings per share of $1.05 on non-GAAP revenue of $17.8B. At the time, analysts were expecting the company to report Q2 EPS of $1.09 on revenue of $17.55B, but those estimates have since changed to $1.06 and $17.84B, respectively. In addition, Intel also raised its fiscal 2021 adjusted EPS view to $4.60 on non-GAAP revenue of $72.5B. Analysts expected Intel to report FY21 EPS of $4.62 on revenue of $72.94B.
2. MOBILEYE NYC: Earlier this week, Mobileye, the Intel unit which develops self-driving cars and advanced driver-assistance systems, announced in a blog post that it has initiated road testing of autonomous vehicles in New York City. "If autonomous vehicles are to work anywhere, we firmly believe, they need to be able to work everywhere," the company said. "That's why Mobileye is testing our self-driving platform in a wide variety of locations around the world - not just in the lab, on empty roads, or even on the challenging streets of Jerusalem. And now we're pleased to have launched testing for our developmental AV in one of the most difficult driving environments in the world: the streets of New York City. Mobileye has now expanded our AV testing program to the City That Never Sleeps, having secured the only current permit to test autonomous vehicles in New York. This latest addition to our global testing activities presents a variety of unique challenges for our AV development program to overcome in preparing our self-driving technologies for worldwide deployment at scale."
3. GLOBALFOUNDRIES: Last week, the Wall Street Journal reported that Intel was considering a deal to acquire GlobalFoundries for about $30B, noting that there was no guarantee a deal could come together and that GlobalFoundries could proceed with a planned initial public offering. Bloomberg reported a day later, however, that Intel had studied the feasibility of acquiring GlobalFoundries, though no formal takeover approach has been made to owner Mubadala Investment Co., and the two sides were not engaged in active talks. Mubadala, the Abu Dhabi wealth fund, continues to work with advisers on plans to list GlobalFoundries at a value of around $30B by the end of the year, or early in 2022, according to Bloomberg.
4. NEW BUSINESS UNITS: Last month, Intel announced that it created new business units focusing on Software and High Performance Computing. The company named Greg Lavender CTO and senior VP of the new Software and Advanced Technology Group, while Raja Koduri was tapped to lead the Accelerated Computing Systems and Graphics Group.