Intel (NASDAQ:INTC) is going to unveil Q3 earnings results on October 21 after the stock market closes. The market expects Intel to deliver earnings per share of $1.11 and revenue of $18.24B.
Last time, it was expected that Intel would post earnings of $1.06 per share when it produced earnings of $1.28. In general, the stock price should rise after upbeat results, but that situation was different. The report was better than expected but traders priced in the good outcome before (look at the series of green candles before the vertical line). Thus, when the actual numbers were out, the sell-off occurred. This time may happen the same.
Intel faces strong competition from Advanced Micro Devices (NASDAQ:AMD). Thus, Intel has to show really strong earnings results to signal investors that it can reduce the technology gap with AMD. For now, most forecasts are bearish for Intel. However, Intel’s processor chips are components in the vast majority of laptops and desktops. Intel’s chips are in high demand especially now amid the global semiconductor shortage. Thus, we can see a reverse up in the long term.
The stock price moves sideways between $52.00 and $55.00 inside the horizontal channel. If it manages to break above the 100-day moving average of $55.00, the doors will be open to the 200-day moving average of $57.25. On the other hand, if Intel breaks below $53.00 – the lows of late September/early October, the way to the bottom of the channel at $52.00 will be open.
Intel: Earnings Preview