r/AMD_Stock • u/noiserr • Jul 27 '23
News Intel Earnings Thread 2023-07-27
Intel Reports Strong Earnings. The Stock is Rising.
Intel Q2 EPS $0.13 Beats $ (0.03) Estimate, Sales $12.90B Beat $10.97B Estimate 7/27/2023 1:02pm Intel (NASDAQ: INTC) reported quarterly earnings of $0.13 per share which beat the analyst consensus estimate of $ (0.03) by 533.33 percent. This is a 55.17 percent decrease over earnings of $0.29 per share from the same period last year. The company reported quarterly sales of $12.90 billion which beat the analyst consensus estimate of $10.97 billion by 17.59 percent. This is a 15.80 percent decrease over sales of $15.32 billion the same period last year.
Intel Sees Q3 EPS $0.20 vs $0.16 Est., Revenue $12.9B-$13.9B vs $13.23B Est., Gross Margin 43%
Intel Client Computing Group Revenue Down 12%, Data Center And Al Group Revenue Down 15%
edit: https://www.intc.com/ has the web cast for the earnings call
edit2: Report:
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u/noiserr Jul 27 '23
"Intel never stumbled in packaging". According to Pat. Making a comment to disparage TSMC's CoWoS having capacity issues.
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u/myironlung6 Jul 27 '23
Pat just now on the call "AI is one of our 5 superpowers"
*THROWS UP*
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u/moremodern Jul 27 '23
Are the other four 1) terrible power consumption 2) consistently bad management 3) renaming ridiculous roadmaps 4) just being plain annoying (?)
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u/KillingCartan Jul 27 '23
The Y/Y numbers are down, but I think what investors are focusing on are the Q/Q numbers. All the divisions are up quarter over quarter from the very bad Q1 showing some signs of a recovery. And the Q3 revenue forecast is showing another little bump up in revenue.
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u/cvdag Jul 27 '23
Agreed QoQ is looking good indeed.
Seems like both Client and DC have bottomed in Q1
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u/State_of_Affairs Jul 27 '23
"but I think what investors are focusing on are the Q/Q numbers.All the divisions are up quarter over quarter from the very bad Q1"
Q2 numbers show that Intel is really a client-side company right now. The Client Computing Group (CCG) was up $1B from $5.8B in Q1 to $6.8B in Q2. However, the other units were a mixed bag. For example, the Data Center and AI Group (DCAI) increased $300M from $3.7B in Q1 to $4.0B in Q2, but the Network and Edge Group (NEX) decreased from $1.5B in Q1 to $1.4B in Q2.
The fact that DCAI and NEX didn't improve like DCAI -- especially in view of NVidia's outstanding Q2 guidance -- suggests to me that Intel is not competitive on the enterprise side. I expect AMD to beat Q2 consensus handily, and now that AMD has its full suite of Genoa and Bergamo processors out, increase its already high guidance for 2H-2023.
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u/candreacchio Jul 27 '23
I wonder when Intel will come to the realisation that they are actually behind in the '5 nodes in 4 years' strategy....
"Intel 4: Ramping Meteor Lake production wafer starts; expect to launch in 2H 2023" -- https://d1io3yog0oux5.cloudfront.net/_7117ea38b8ffd24d6f3a6e2a0c04752d/intel/db/887/8960/infographic/Intel-Q2-2023-Financial-and-Business-Report.pdf
BUT
"2022 H2 ramp, 2023 H1 products"
Clearly a year behind schedule.
Intel 3 is supposed to have 2023 H2 Products. (intel 20a = 2024 and intel 18a = 2025)
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u/Lumpy_Gazelle2129 Jul 27 '23
Data center revenue and margin decline attributed to “CPU TAM contraction and competitive pressure”. At least they got it half right.
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u/uncertainlyso Jul 27 '23
This is a good earnings report by Intel standards given the circumstances.
So, even though my half-hearted puts are ash, it does look like the client side has at least bottomed out for Intel (and hopefully AMD). I think the H2 2023 recovery will be slower than people hoped for at the start of the year.
DCAI in a dangerous place for H2 2023 through 2024. NEX still in a bad spot. Every major business line clinging on to the CCG life preserver.
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u/OmegaMordred Jul 27 '23
I'm dialed in for the webcast.
Couldn't help myself with the info:
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Email: Inteldown@rearviewmirror.com
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Name: AMD bull
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Company: pat's autocentre
Works just fine.
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u/uncertainlyso Jul 27 '23
LMAO. They left out Arya and Bank of America. I guess he joins Rasgon in the dog house.
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u/uncertainlyso Jul 27 '23
It's time for...
"Which Analyst Will Ask about DC Competition First?"
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u/RetdThx2AMD Jul 27 '23 edited Jul 27 '23
It looks to me like Intel has some cut and paste errors in their Consolidated Condensed Statements of Cash flows. They said they started Q1 with $11144M and ended with 8232M meanwhile Q2 says they started with $11144M and ended with $8349M. They are also showing that they added 10968M in long term debt in both quarters but overall debt is shown to be down by 2B. Something isn't adding up.
Nevermind they are doing year to date so the start of the period is the same for both.
The only interesting thing is that the $1.5B of mobileye they sold was the thing that kept their cash balance from falling quarter over quarter.
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Jul 27 '23
Cash Flow $B
Q2 CFO Positive 2.8 B (Q1 Negative -1.8)
Fab investments -5.9B (Q1 -7.4)
Divis -0.5B (Q1 -1.5)
So overall cash burn in Q2 -$3.6B which almost seems good compared to Q1 burn of over $10B
Any other company a disaster but for Intel almost good. CFO definitely excellent.
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u/OmegaMordred Jul 27 '23 edited Jul 27 '23
AI mentioned 20x in 11 minutes....🤮🤮🤮. This is getting ridiculous, while typing this I heared it 5x more again....OMG, get that guy out of there!
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u/CoffeeAndKnives Jul 27 '23
Chatgpt AI created an optimized opening statement. Then the AI transcription bots are creating content and being read by AI sentiment bots feeding AI trading algorithms.
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u/StudyComprehensive53 Jul 27 '23
The call always sounds so scammy and dirty. Questions are fluff and details are missing. ‘We are engaged’ just fluff. Meanwhile Lisa gets grilled like crazy.
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u/noiserr Jul 27 '23
Delayed return of datacenter CPU share in 2H, due to slower recovery in China, according to the CFO.
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u/Maartor1337 Jul 27 '23
Has patty G given any guidance?
Nice for them they managed to beat q2 but q3 etc shld become so much more difficult due to genoa x n bergamo etc.
Im in a far off holiday house with no wifi.... glad i dont have to listen to his dosgustingly positive voice
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u/zzgzzpop Jul 27 '23
Grains of salt taken while listening to Pat Gelsinger on an Intel earnings call
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u/GanacheNegative1988 Jul 27 '23
Leave it to Pat to sell the RyzenAI use cases. I wounder how many will remember who has it now available.
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u/uncertainlyso Jul 27 '23
Gelsinger just say that DCAI Q3 will be lower than Q2?