Intel To Report Q1 Earnings Under New CEO: Revenue, Restructuring, Tariff Concerns On Watch

Intel Corp. INTC is set to release its first-quarter financial results after Thursday's closing bell. Here's a look at what to watch in the report. 

New CEO: Thursday's earnings release will be Intel's first under new CEO Lip-Bu Tan who took over last month amid significant challenges and ongoing restructuring of the company. 

Bloomberg reported Intel will be announcing layoffs of 20% of its workforce this week in what would be the first major restructuring effort under Tan's leadership. The layoffs are reportedly targeted toward reducing bureaucracy and streamlining Intel’s focus on engineering excellence. 

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Investors will be watching for strategic updates from Tan, particularly regarding cost-cutting initiatives and restructuring or possible layoffs. 

Tariffs: Intel faces uncertainty from potential new tariffs on laptops and semiconductors due to ongoing trade tensions with China, which could impact future sales and supply chains. 

The report may show a temporary boost in PC sales as buyers rushed to avoid tariffs, which could lead to weaker demand in the latter half of the year. Some companies that have already reported for the quarter have revised or pulled their previous outlooks in light of the economic uncertainty. 

Expert Ideas: Intel has a consensus price target of $25 based on the ratings of 31 analysts, according to Benzinga Edge. The lowest price target of $19 was issued by Wedbush analyst Matt Bryson on Wednesday heading into the company's first-quarter earnings release. Wedbush maintained the stock with a Neutral rating. 

Earlier this week, Bernstein analyst Stacy Rasgon maintained Intel with a Market Perform and lowered the price target from $25 to $21 and Barclays maintained an Equal-Weight rating and lowered the price target from $23 to $19.

According to estimates from Benzinga Pro, analysts expect Intel to report quarterly earnings of one cent per share on revenue of $12.3 billion after Thursday's closing bell. 

INTC Price Action: Intel shares were up 2.77% at $21.16 at the time of publication Thursday, according to Benzinga Pro. 

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