Intel (INTC) is scheduled to report results of its fourth fiscal quarter after the market close on January 26, with a conference call scheduled for 5:00 pm ET. What to watch for:
1. GUIDANCE: Along with its last report, Intel guided for Q4 adjusted earnings per share of 90c on non-GAAP revenue of $18.3B. At the time, analysts were expecting the company to report Q4 EPS of $1.01 on revenue of $18.25B, but those figures have since changed to 90c and $18.32B, respectively.
2. SUPPLY CHAIN: The U.S. Commerce Department said in a report this week that the semiconductor supply chain remains "fragile," as demand continues to outstrip supply. Median demand for chips highlighted by buyers was as much as 17% higher in 2021 than 2019, and buyers aren't seeing commensurate increases in the supply they receive. "This is a major supply and demand mismatch," the Department of Commerce said in the report. The median inventory of semiconductor products highlighted by buyers has fallen from 40 days in 2019 to less than five days in 2021, it noted.
3. OHIO: Last week, Intel confirmed plans for an initial investment of more than $20B in the construction of two new chip factories in Ohio. The investment will help boost production to meet the surging demand for advanced semiconductors. To support the development of the new site, Intel pledged an additional $100M toward partnerships with educational institutions to build a pipeline of talent and bolster research programs in the region. The initial phase of the project is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and to support tens of thousands of additional local long-term jobs across a broad ecosystem of suppliers and partners, the company said.
4. CFO: On January 10, Intel announced that David Zinsner had been appointed as the company's executive VP and CFO, effective January 17. Zinsner had previously served as executive VP and CFO at Micron (MU). As previously announced, current CFO George Davis will retire from Intel in May and will remain with the company in an advisory role until then to ensure a seamless transition, Intel said.
5. MOBILEYE: In early December, Intel announced its intention to take its self-driving car unit Mobileye public in mid-2022 via an initial public offering of newly issued stock. Commenting on the move, Intel CEO Pat Gelsinger said that Mobileye is "already very profitable" and that the timing of an IPO is good. Less than a month following the IPO plan announcement, Mobileye unveiled that it has formed multiple new strategic collaborations with car makers Volkswagen (VWAGY), Ford (F), and Zeekr.