Technology giants, Yahoo! Inc. (NASDAQ:YHOO) and Intel Corporation (NASDAQ:INTC) will post their first quarter earnings on Tuesday, April 15 after the market close. For Yahoo, analysts expect the company to post flat earnings while Intel is expected post revenue above the guidance range.
Yahoo focusing on mobile
According to the analysts, Yahoo! Inc. (NASDAQ:YHOO) will post flat earnings at $1.08 billion compared to $1.07 billion in the corresponding quarter of the last year. Revenue, on the other hand, is expected to drop from 38 cents to 37 cents year on year. The internet giant is expected to post revenue in the range of $1.06-$1.10 billion, and adjusted EBITDA at $290-$330 million.
Yahoo! Inc. (NASDAQ:YHOO) is preparing to enter the TV programming business by producing original programming. The report suggested that the company would earn a profit from advertising, as well as from licensing. Also, it would compete directly with YouTube by launching its own video hosting website. Yahoo is trying to make up for the decline in display ads and search ads revenue by focusing on developing and delivering content on mobile. At present, Yahoo has a mobile customer base of around 400 million and this number is significant in increasing the web traffic.
Intel Q2 guidance may disappoint
A report from Goldman Sachs stated that sales of Intel Corporation (NASDAQ:INTC) would come in above the guidance range of $12.8 billion, which is a decline of 7% quarter over quarter.
For the second quarter, the chip maker is expected to provide guidance in line to marginally below. Sales is expected to grow 1% quarter over quarter and gross margin will enhance by 80 basis points quarter over quarter.
Analysts believe a “lackluster guidance will likely stand out in an environment in which most semis post beat-and-raise quarters.”
Analysts believe that Intel Corporation (NASDAQ:INTC) will regain some of its lost ground by producing quality mobile product in the market. The company has acknowledged the competition from Qualcomm and NVIDIA in the mobile segment. Back in February, the company announced it LTE-Advanced XMM 7260 to be launched in this quarter. The chip maker reported that some major hardware companies have decided on using the product in their devices.
Apart from the mobile segment, Intel Corporation (NASDAQ:INTC) is also optimistic in the wearable technology space, where it is expecting to gain on the power of crowdsourcing.