Intel Corporation (NASDAQ:INTC) will release its earnings report for the three months ended September 30 on Tuesday October 15 after the market closes. The company is expected to show a continued slow down as demand for its PC processors continues to drop off, and the firm continues to have difficulty breaking into mobile.
Anlaysts following the processor maker are looking for earnings per share of 53 cents from Intel Corporation (NASDAQ:INTC) in tomorrow’s report. The company showed earnings of 60 cents per share in the same three months of last year. Revenue is expected to come in at $13.5 billion, flat from the company’s numbers last year.
Intel PC problems
Demand for Intel Corporation (NASDAQ:INTC) processors has been lower than expected in the third quarter as the back to school rush failed to materialize in the same way it had in past years. That problem was compounded by poor reviews of some of the company’s latest Haswell PC processors. Users complained that the new chips generated more heat than last year’s line.
That problem is probably a minor part of Intel Corporation (NASDAQ:INTC) worries heading into the holiday period. The company has proved itself unable to generate mass sales in the mobile market, and tablets and smart phones have been eating into the company’s bottom line.
The company’s conference call, which will be held at 5 PM EST on Tuesday, will likely be full of questions about the company’s plans for handling the transition to mobile as the PC market continues to become less relevant. There are some silver linings for Intel Corporation (NASDAQ:INTC), though these are unlikely to make themselves known in tomorrow’s earnings report.
Intel going mobile
The new range of Intel tablet processors, known as Bay Trail, should help the company break into the mobile market, but they will be more important in the company’s next earnings report. The first tablets using the processors, manufactured by Dell Inc. (NASDAQ:DELL), have not yet been released and can contribute nothing to sales figures.
Intel Corporation (NASDAQ:INTC) is by no means a write off, but the company’s performance on 2013’s market leaves a lot to be desired. Stock in Intel is up by close to 14% for the year so far, losing out to the wider S&P 500 which gained close to 20% in the same period.